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The monthly transaction volume for North America’s crypto market posted massive growth in the past year. A study by Chainalysis revealed that this impressive growth is primarily driven by the rising popularity of decentralized finance (DeFi).
According to a report by the blockchain analytics firm Chainalysis, the monthly transaction volume during a ten-month period in the North American crypto market rose by more than 1000 percent. From just $14.4 billion in July 2020, monthly crypto transaction volume in the region rose to $164 billion in May 2021.
The region posted a total transaction volume of over $750 billion from June 2020 to July 2021. Chainalysis said that North America is the second-largely crypto economy in the world and accounts for 18.4 percent of global activity during the time period.
North America’s monthly cryptocurrency transaction volume grew significantly during the time period studied, rising from $14.4 billion in July 2020 to a high of $164 billion in May 2021 — an increase of over 1,000% — before a slight dip in June..
The majority of this crypto activity comes from the United States, which is not surprising since the U.S. ranked eighth in the Global Crypto Adoption Index. “The U.S.’s ranking is largely due to its high ranks in total cryptocurrency value received and value received in retail-sized transactions in proportion to internet-using population and purchasing power, ranking fourth and third in each category respectively,” Chainalysis said. “Simply put, more Americans are devoting a higher share of their purchasing power to cryptocurrency than in nearly every other country.”
“Much of this growth was driven by the growing popularity of DeFi,” the blockchain analytics firm added. Around $276 billion worth of crypto entered into DeFi platforms between July 2020 and June 2021. The volume is second only to the $389 million pouring into DeFi from the Central, Northern & Western Europe (CNWE) region.
“DeFi transactions represented 37% of North America’s overall transaction volume during the time period — only CNWE and Central & Southern Asia and Oceania (CSAO) devoted a higher share of activity to DeFi, and in recent months, DeFi activity has eclipsed activity on centralized services,” Chainalysis said. “Overall, nine of the 25 biggest cryptocurrency services by transaction volume in North America are now DeFi protocols, with Uniswap, dydx, and Compound being the most popular.”
