According to a new report by Chainalysis, the United States of America is way behind in terms of stablecoin adoption in 2024. The renowned on-chain analytical firm released the report on Thursday, indicating that investors have turned their attention to Bitcoin instead.Â
As per the report, compared to the global market, the adoption of stablecoins in the United States has cooled down. In the report, Chainalysis grouped 151 countries into four sub-indexes highlighting the growing adoption of cryptocurrency in each one.
Further insights into the compilation of the data mandated the firm to estimate the transaction volumes for various crypto services and protocols of each country using the web traffic patterns of those platforms.
Additionally, the launch of the Bitcoin ETF in the US triggered a massive increase in the total value of BTC transactions across the globe. The report illustrated how regions with higher-income countries like North America and Western Europe recorded year-over-year increase in BTC institutional-sized transfers.
How Interested in Stablecoin Cooled in the US – Chainalysis
As per Chainalysis, the volume of stablecoin transactions has reduced on US-regulated exchanges from 50% in 2023 to less than 40% within a year.
On the flip side, the share of stablecoin on non-US regulated exchanges recorded a massive surge hitting 60% in 2024. However, in the report, Chainalysis established that the surge is due to the growing usage of stablecoin in emerging markets outside the U.S.
More so, the firm stated that the emerging adoption of stablecoin is due to the inflating demand for US dollar-backed assets. More so, the report emphasized that the growing adoption of US dollar-backed assets is common with countries with restricted access to less volatile currencies.
Chainalysis mentioned how above $1 trillion US dollar banknotes are held outside the United States. In addition, the company stated that the global markets are adopting US dollar-backed stablecoins due to how they help facilitate cheaper transactions.
Meanwhile, the report by Chainalysis further reflects the submission of Tether CEO, Paolo Ardoino. Recall that last month, there is a growing demand for stablecoins in countries like Argentina, Turkey, and Vietnam compared to the United States.
Also, another factor contributing to the decline of stablecoin adoption in the US is the doubt over the regulatory framework for the digital asset market in the country. In the report, Chainalysis quoted Circle explaining how the lack of well-defined regulations in the US has contributed to the emergence of various crypto hubs in Europe and the United Arab Emirates.
These emerging hubs according to the report have attracted more investors with their favorable regulatory stipulations.
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