Bitcoin Activity Surges in U.S. After ETF Launch, But Stablecoin Adoption Declines

A recent Chainalysis report released on October 17 reveals that Bitcoin activity in the United States has surged following the introduction of spot BTC ETFs.

However, the adoption of stablecoins in the U.S. has not kept pace with global trends, experiencing a decline in 2024. Specifically, stablecoin transactions on U.S.-regulated exchanges dropped from around 50% in 2023 to under 40%.

In contrast, non-U.S. regulated platforms have seen a significant increase, with stablecoin transactions surpassing 60% this year.

Chainalysis suggests that this shift indicates a robust growth of stablecoins in emerging markets rather than a decrease in U.S. activity. One major driver behind this trend is the rising global appetite for U.S. dollar-backed assets, particularly in nations with unstable currencies.

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The Federal Reserve noted that by the end of 2022, over $1 trillion in U.S. dollar notes—nearly half of all dollar-denominated currency—were held outside the United States.

Additionally, regulatory uncertainties in the U.S. are obstructing its ability to lead in stablecoin adoption. This issue has prompted concerns from companies like Circle regarding the lack of a defined regulatory framework.

Consequently, financial hubs in Europe and the UAE are becoming increasingly attractive for stablecoin initiatives, highlighting the urgent need for U.S. policymakers to adapt to this evolving environment.

Alexander Zdravkov