North America emerged as the dominant cryptocurrency market, boasting an estimated on-chain value of $1.2 trillion between July 2022 and June 2023.
According to Chainalysis’ latest report, the figure accounts for 24.4% of the global transaction activity observed during this period.
Crypto, DeFi Dips in North America
Data also suggest that while North America has historically been a heavy adopter of DeFi and the region still leads the world in DeFi usage by raw transaction volume, its share of activity has fallen significantly over the course of the last year.
In a report shared with CryptoPotato, Chainalysis pointed out that numerous DeFi protocols specialize in highly speculative trading. These platforms recently created assets that are typically absent from their centralized counterparts. Hence, the assets tend to be the first choice for investors seeking to divest when market conditions turn unfavorable.
Another significant factor contributing to the slowdown of DeFi in North America is the continued regulatory uncertainty within the US market.
“Though challenging, developing such regulation is imperative as DeFi has many useful real-world applications like trading, asset management, lending, and payments, to name just a few.”
Chainalysis noted that the decline in crypto activity over the past year in North America, attributed to a global decrease in both transaction volume and grassroots adoption, may not come as a surprise.
Despite this drop in transaction volume, North America managed to secure the fourth position in the blockchain analysis firm’s 2023 Global Crypto Adoption Index. As the region bounces back from the crypto winter, the role of regulation in its recovery becomes pivotal.
North America’s Crypto Landscape
North America went from the high-profile crypto Super Bowl ads and celebrity endorsements of 2022 to an uncertain 2023 characterized by regulatory delays and the scrutinizing of well-established industry giants. The US is the biggest loser of all.
In May 2022, the collapse of LUNA resulted in the obliteration of nearly $60 billion of the crypto market. Those who had experienced immense wealth through LUNA’s rapid ascent the preceding year saw their fortunes completely vanish.
Then, in November 2022, startling disclosures triggered the downfall of the crypto exchange FTX, along with its formerly celebrated founder, Sam Bankman Fried, who is currently undergoing trial in the US.
This news is republished from another source.
