North America, led by large-scale institutional investment activity in the US, generated $1.3 trillion in Bit transactions over the past year, accounting for 22.5% globally. However, the instability of stablecoin regulations is causing the US to gradually lose its leading position.
According to the latest report by Chainalysis, North America continues to affirm its leading position in the global Bit market during the period from July 2023 to June 2024. This region recorded a total on-chain transaction value of $1.3 trillion, accounting for 22.5% of the total global transaction value.
The main driver of this growth is large-scale institutional investment activity, particularly in the US, where 70% of transactions exceed $1 million. Canada, the second-largest market in the region, also made a significant contribution with a total transaction value of $119 billion during the same period.
The dominance of the US in the North American Bit market is reinforced by the active involvement of organizations related to Bitcoin and Ethereum ETFs. However, this market also faces significant volatility. Chainalysis points out that the US market is more sensitive to price fluctuations compared to other global markets.
"In recent quarters, the US market has shown more pronounced sensitivity to both price increases and decreases. When Bit prices rise, the US market records higher growth than the global Medium, and vice versa when prices fall," the Chainalysis report states.
Stablecoin flow shifting away from the US
Although the adoption of Bit in the US is increasing, the share of stablecoin transactions on exchanges managed in the US has decreased significantly. From around 50% in 2023, this ratio has dropped below 40% in 2024.
Chainalysis believes that the instability in the legal framework regulating stablecoins in the US is the main reason for this trend. Circle, the issuer of the USDC stablecoin, stated that the lack of clarity in regulations has led many stablecoin projects to seek more favorable legal environments in Europe and the UAE.
In contrast, stablecoin transactions outside the US are growing rapidly, accounting for more than 60% of total transactions in non-US markets by 2024. This trend is particularly prominent in emerging markets, where stablecoins play a crucial role in helping users access the US dollar without relying on the traditional banking system. Circle also confirmed that 45% of the USDC in circulation at the end of 2022 was held outside the US.
The increasing use of stablecoins outside the US reflects a global trend, as international markets increasingly view USD-pegged stablecoins as a store of value and a more cost-effective transaction method. Paolo Ardoino, CEO of Tether, also emphasized the important role of USDT, especially in countries facing high inflation like Argentina, where it provides financial stability in the context of economic instability.
