A new report from blockchain analysis firm Chainalysis highlights North America’s continued dominance in the global cryptocurrency market, driven largely by institutional interest. Between July 2023 and June 2024, North America received approximately $1.3 trillion in on-chain value, accounting for 22.5% of global crypto activity.
Institutional Interest Fuels Growth
Eric Jardine, Cybercrime Research Lead at Chainalysis, emphasized that institutional crypto activity has been the main driver behind North America’s market supremacy. The approval of spot Bitcoin ETFs by the Securities and Exchange Commission (SEC) in January 2024 played a crucial role in attracting institutional investment. Spot Bitcoin ETFs in the US saw over $1 billion in inflows on October 14, marking the biggest one-day inflow in four months.
Canada also plays a significant role, receiving $119 billion in value during the same period. Institutional-sized transfers, those exceeding $1 million, make up 70% of North America’s crypto activity.
Rising Institutional Activity Explained
According to David Duong, Head of Institutional Research at Coinbase, institutional trading volume on the exchange doubled in the first half of 2024. This surge followed clearer US regulations after court decisions in Ripple and Grayscale cases, paving the way for asset managers like BlackRock and Fidelity to launch BTC and ETH ETFs.
Duong highlighted that these ETF launches have been among the most successful on record, drawing liquidity and market depth, which are key for institutional participation. He also pointed out the growing infrastructure in the US, offering institutional-grade solutions such as custody and financing.
Impact of US Presidential Election on Crypto Market
Duong suggested that the 2024 US Presidential Election could be a significant factor influencing the crypto market. He predicted that while there might be short-term volatility, institutional support will likely stabilize the market in the long run.
Challenges Facing North America’s Crypto Dominance
Despite its leadership, North America faces challenges, particularly in retail adoption. Jardine noted that retail activity has not yet returned to previous bull market levels. Regulatory concerns are also a major issue, with Charles Adkins, President of Hedera, stating that clearer US crypto frameworks are necessary to maintain North America’s leadership.
Regions like Europe, Asia, and the Middle East are developing regulatory frameworks like MiCA in Europe and the UAE’s AED-backed Stablecoin, which could attract more crypto businesses due to clearer legal structures.
The Need for Regulatory Clarity in North America
Hadley Stern, Chief Commercial Officer at Marinade, emphasized that North America’s crypto sector requires “sensible regulation with clear rules” to continue thriving. David Duong added that a lack of consensus on stablecoin regulation in the US could reduce stablecoin adoption and negatively impact liquidity and trading activity in the region.
Website: CentBit.Online – Crypto & Blockchain Expert Bangladesh
