Chainalysis: the scope of cryptocurrencies depends on the economic situation in the country

The new Chainalysis 2022 Geography of Cryptocurrency report demonstrates that the differences in the global economy form two crypto markets. At the first stage, cryptocurrencies are used as a means of payment — exactly as it was conceived ten years ago. The second is more characterized by a modern approach — the use of crypts for investment.

According to the Chainalysis report, by June 2022, cryptocurrency transactions in Latin America reached $562 million — this is 40% more than in the whole of last year. The report says that due to record high inflation and instability of the local currency, residents of the region turn to stablecoins to make purchases and store savings.

Where these methods of application dominate, crypto markets may develop differently than in areas where decentralized finance (DeFi) is used. Chainalysis has found that over the past year, the focus of the US and Canada on DeFi has led to different behavior in the local market than in the rest of the world. Namely, there were stronger fluctuations on it.

These are the trends typical of Latin American countries.

As of June, in 2022 Bitso, Mexico’s largest exchange, processed money transfers from the United States to Mexico in the amount of more than $1 billion — this is about 4% of the local transfer market. Compared to last year, the volume of such transactions increased by 400%.