The launch of spot Bitcoin 
$98,886 exchange-traded funds (ETFs) in the U.S. has led to record trading volumes for Bitcoin. However, the usage of stablecoins, a category of altcoins, has seen a slowdown in the U.S. compared to global markets, exhibiting a dramatic decrease in 2024. In contrast, there is a surge in demand for stablecoins in developing countries like Turkey.
U.S. Declines, Global Markets See Increase
According to a report published by Chainalysis on October 17, the rate of stablecoin transactions in the U.S. has dropped compared to 2023. The share of stablecoin transactions on U.S. exchanges was around 50% in 2023 but fell below 40% in 2024. Meanwhile, the share of stablecoin transactions on exchanges outside the U.S. has exceeded 60% during the same period.
The Chainalysis report noted that this trend does not signify a steep decline in stablecoin usage within the U.S. Instead, it highlights the rapid growth of stablecoins, particularly in emerging markets and regions outside the U.S. The demand for U.S. dollar-backed assets has also played a role in this shift.
According to the Federal Reserve, by the end of 2022, approximately half of the total U.S. dollar banknotes in circulation, over 1 trillion dollars, are held outside the U.S. Emerging economies, in particular, are showing increased interest in U.S. dollar-backed stablecoins due to lower transaction costs and the need for value preservation.
Regulatory Uncertainty Threatens U.S. Leadership
Another significant reason for the decline in stablecoin usage in the U.S. is regulatory uncertainty. The Chainalysis report stated that this situation threatens the U.S. leadership in the stablecoin market. Circle, a leading stablecoin company, indicated that the lack of clear cryptocurrency regulations in the U.S. has prompted regions like Europe and the UAE to attract stablecoin projects.
A spokesperson from Circle stated, “The absence of a regulatory framework for dollar-referenced stablecoins poses a threat to American interests.” The ability of developing countries to create regulatory frameworks to promote stablecoin usage increases pressure on U.S. policymakers. The report emphasizes the necessity of establishing a clear regulatory framework for the U.S. to maintain its leadership in this sector, predicting that the global stablecoin market will continue to grow rapidly.
