Data analysis firm Chainalysis has released its Q1 report, which not only evaluates the recovery of the cryptocurrency market but also highlights the important role stablecoins play in promoting financial inclusivity in emerging countries.
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Over $40 billion stablecoins purchased globally in March
Turkey has the highest “stablecoin purchase/GDP” ratio
DeFi continues to exist
Over $40 billion stablecoins purchased globally in March
In the first quarter, despite strong demand from US investors for Bitcoin spot ETFs, which continue to dominate stablecoin purchases, global demand is growing.
According to Chainalysis, over $40 billion stablecoins were purchased globally in March alone, indicating that stablecoins are becoming truly global assets, as shown in the following image.
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Turkey has the highest “stablecoin purchase/GDP” ratio
In addition, when looking at the ratio of stablecoin purchases to GDP in various countries, although the US and the EU still dominate, emerging markets such as Turkey, Thailand, and Brazil have much higher stablecoin purchase ratios than Europe and the US.
International interest reflects the widespread and growing reliance on USDT. And countries with severe currency depreciation, such as Turkey and Georgia, have performed particularly well in purchasing USDT.
Chainalysis points out:
The increasing adoption of stablecoins such as USDT globally indicates their important role in promoting financial inclusivity. Stablecoins not only provide basic financial services and promote economic participation but also offer consistent value storage, especially for countries with economic instability and currency depreciation.
“Stablecoin purchase/GDP” ratio in various countries
DeFi continues to exist
The total value locked (TVL) in DeFi soared to a high of $75 billion at the end of 2021 and the beginning of 2022 but experienced a sudden decline of over 69% in 2022, resulting in a loss of approximately $60.74 billion.
However, since the end of 2023, DeFi has shown signs of recovery along with the overall market, especially in the area of liquidity mining, which has become a key driver for DeFi TVL, as shown in the following image. More emerging applications such as RWA and DePin also demonstrate growth and have the potential to bring more economic value and transaction activity to the blockchain.
Chainalysis is quite optimistic about the future. Its conclusion states:
The transition from winter to spring is not only a recovery of wealth but also a significant step toward blockchain technology and cryptocurrencies becoming key components of the financial system. The global financial infrastructure is facing an unprecedented opportunity for disruption.
DeFi TVL changes
Chainalysis
Stablecoins
Further reading
Study: Taiwan made $310 million in cryptocurrency profits in 2023, the US ranks first with $9.3 billion, and China is only fourth?
Chainalysis: Exchanges preferred for laundering illicit funds, North Korean hacker group switches to new privacy coin protocol YoMix.