After the continuous bullish momentum in the wider crypto market, the number of wallets holding a positive balance has grown significantly. According to a recent report by Chainalysis, more than 400 million cryptocurrency wallets hold a positive balance, following the bullish trends in the wider market.
Additionally, the market’s unprecedented growth has been luring massive retail and institutional giants, especially those transacting in dollar-pegged stablecoins.
The report published on December 05, 2024, further reads that the balance of the growing balance in the wallet indicates a clear trend that the crypto market is going through a significant adoption phase.
The Chainalysis team quoted in its report ” It is clear that we’re experiencing a seismic shift in both perception and usage.”
Since the beginning of this year, several published reports have claimed that cryptocurrency adoption in the YTD frame remains quite higher than in any other year or time frame.
Stablecoins Surpassed others in on-chain transactions!
According to the data available on CoinMarketCap, the most traded cryptocurrency is Tether (USDT), followed by the market pioneer Bitcoin, Ethereum, XRP, and USDC.
The recorded trading volume of the entire stablecoins market in the past 24 hours was $220,865, 672, 239 which saw a decline of 24.88 percent.
Source: CoinMarketCap
It is worth noting that the report also underscores the surge in dominance of stablecoins trading on-chain, dominating 50 to 75 percent of all on-chain transactions since the start of 2024.
A report published by Chainalysis in October this year highlighted that the adoption of stablecoins saw a decline in adoption in the United States, the percentage of stablecoin transactions on exchanges based in the United States declined by approximately 50% last year and around 40% this year.
In contrast, cryptocurrency adoption in North America has followed a completely different trajectory, with stablecoin transactions now accounting for over 60% this year.
Tether’s Chief Executive Officer, Paolo Ardoino, highlighted that Argentina, Turkey, and Vietnam are leading the demand for stablecoins, while the United States lags behind.
One significant reason for the United States’ slower adoption of stablecoins is the inconsistent regulatory framework governing stablecoins and virtual assets.
The wider cryptocurrency market is expected to grow at an appreciable pace with stablecoins reaching new heights.
Reports indicate that USDT has been frequently associated with illicit activities. In early 2024, several analytical firms highlighted allegations that terror groups involved in conflicts such as the Ukraine and Hamas wars utilized USDT for transactions.
Additionally, authorities seized numerous wallets linked to illegal activities and war financing during the final quarter of 2023.
Stablecoins are intended to maintain a stable value by being pegged to a traditional currency or asset. While several stablecoins are available, USDT, USD, and DAI are some of the most prominent. USDT stands out as the most widely traded blockchain asset in the market.
