Chainalysis: Global Stablecoin Purchases Reach $40 Billion in March, Demand Rivals Bitcoin ETF

Data analysis firm Chainalysis has released its first quarter report, which not only evaluates the recovery of the cryptocurrency market but also highlights the significant role stablecoins play in promoting financial inclusion in emerging countries.

Global Stablecoin Purchases Exceed $40 Billion in March

Despite strong demand from U.S. investors for Bitcoin spot ETFs in the first quarter and continuing to dominate the share of stablecoin purchases, global demand is growing.

According to Chainalysis, more than $40 billion in stablecoins were purchased globally in March alone, indicating that stablecoins are becoming truly global assets, as shown in the figure below.

4/ Stablecoins offer anyone with an internet connection a gateway to the USD, unlocking new pathways of financial inclusion. The US leads in purchases, but global demand is high, with $40B+ purchased in March alone across diverse nations and regions. pic.twitter.com/AyOxVypS9j

— Chainalysis (@chainalysis) April 25, 2024

Turkey Leads in "Stablecoin Purchases/GDP" Ratio

In addition, when looking at the ratio of stablecoin purchases to GDP in various countries, although the U.S. and the EU still dominate, emerging markets such as Turkey, Thailand, and Brazil have a much higher ratio of stablecoin purchases to national GDP than Europe and the U.S.

International interest reflects a growing and widespread reliance on USDT globally. Countries with severe currency devaluation such as Turkey and Georgia perform exceptionally well in purchasing USDT.

Chainalysis points out:

The increasing adoption of stablecoins like USDT internationally indicates their important role in promoting financial inclusion. 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 devaluation.

DeFi Continues to Exist

The total value locked (TVL) in DeFi soared to a high of $75 billion at the end of 2021 and beginning of 2022 but plummeted by over 69% in 2022, resulting in a loss of approximately $60.74 billion.

Since the end of 2023, DeFi has shown signs of recovery along with the overall market, especially with liquidity mining becoming a key driver of DeFi TVL, as shown in the figure below, now able to rival lending and DEX sectors. More emerging applications like RWA and DePin also show signs of growth and have the potential to bring more economic value and trading activity into blockchain.

Chainalysis is quite optimistic about the future, concluding:

The transition from winter to spring is not just a revival of wealth but also signifies an important step for blockchain technology and crypto assets to become key components of the financial system. The global financial infrastructure is facing a more mature moment of disruption than ever before.