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The recent report from Chainalysis offers an insightful look into the crypto market in North America, examining its global dominance, the impact of institutional investments, etc. 
The <a href="https://www.chainalysis.com/blog/north-america-cryptocurrency-adoption/" data-type="link" data-id="https://www.chainalysis.com/blog/north-america-cryptocurrency-adoption/" target="_blank" rel="noopener">Chainalysis report</a> posted on Oct. 23 shows the dominant position of the United States in the global cryptocurrency market. The country accounted for over $1 trillion in transaction volume from July 2022 to June 2023, and when combined with Canada, nearly a quarter of the global transaction volume. 
This impressive figure is primarily attributed to significant engagement from large institutional investors, with transactions of $1 million or more comprising 76.9% of the region’s transaction volume. 
<figure class="wp-block-image size-full">
 <img decoding="async" src="https://www.chainalysis.com/wp-content/uploads/2023/10/na-all-region-shares-800x515.png" alt="North America leads in crypto usage trend, Chainalysis says - 21" class="wp-image-11598">
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 Crypto transactions across the world | Source: Chainalysis
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</figure> 
However, the crypto landscape has experienced fluctuations, notably after the FTX exchange incident and the commencement of <a href="https://crypto.news/sbf-will-likely-lose-criminal-trial-former-sec-official-believes/" data-type="link" data-id="https://crypto.news/sbf-will-likely-lose-criminal-trial-former-sec-official-believes/">Sam Bankman-Fried’s criminal trial</a>, which led to a contraction in activity. 
This situation was further exacerbated by the <a href="https://crypto.news/bitcoin-rides-banking-sector-chaos-over-the-28k-mark/" data-type="link" data-id="https://crypto.news/bitcoin-rides-banking-sector-chaos-over-the-28k-mark/">banking crisis</a> in March, marked by the closure of Silicon Valley Bank and subsequent actions against other crypto-friendly banks, such as Silvergate and Signature. 
Despite these setbacks, on-chain activity began to recover in June, with data suggesting that the decline was mainly due to a pullback from institutional investors, while retail users and pro traders maintained consistent activity levels. 
 You might also like: <a href="https://crypto.news/chainalysis-central-northern-and-western-europe-reported-to-be-second-largest-crypto-economy-this-year/"> Chainalysis: Central, Northern, and Western Europe reported to be second largest crypto economy this year </a> 
The report also sheds light on the changing dynamics of stablecoin usage in North America. Over the past year, the proportion of on-chain transaction volume represented by stablecoins dropped from 70.3% to 48.8%, with the sector’s <a href="https://crypto.news/market-cap/" data-type="link" data-id="https://crypto.news/market-cap/">market capitalization</a> reaching its lowest point in over two years during the summer. 
Furthermore, there has been a shift in stablecoin activity away from U.S.-licensed services, with more than half of all traded stablecoins now flowing to non-U.S. licensed exchanges. This trend poses a challenge for U.S. regulators, who are keen to exercise <a href="https://crypto.news/fed-watchdog-michael-barr-calla-stablecoins-risk-for-economy/" data-type="link" data-id="https://crypto.news/fed-watchdog-michael-barr-calla-stablecoins-risk-for-economy/">regulatory authority</a> over stablecoins due to the pivotal role of USD-denominated reserves and the potential for the U.S. to house cryptocurrency businesses that could significantly influence the global utilization of the U.S. dollar in the expanding digital economy. 
<figure class="wp-block-image size-full">
 <img decoding="async" src="https://www.chainalysis.com/wp-content/uploads/2023/10/na-asset-type-share-800x342.png" alt="North America leads in crypto usage trend, Chainalysis says - 22" class="wp-image-11603">
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 North America’s share in crypto transactions | Source: Chainalysis
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</figure> 
In terms of decentralized finance (<a href="https://crypto.news/tag/defi/" data-type="link" data-id="https://crypto.news/tag/defi/">defi</a>), North America continues to lead in global defi volume. However, the share of decentralized protocols in overall volume has declined over the past year. By June, the on-chain activity in the U.S. and Canada was more evenly distributed between defi and centralized exchanges. 
The information provided by the Chainalysis report paints a comprehensive picture of the current state of the North American crypto market, illustrating its dominance and the challenges it faces. 
 Read more: <a href="https://crypto.news/chainalysis-report-debunks-cryptos-role-in-terrorism-financing/"> Chainalysis report debunks crypto’s role in terrorism financing </a>

North America leads in crypto usage trend, Chainalysis says

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