Altcoins are twice more important in East Asia as in North America
2 min readBlockchain’s analytics company Chainalysis has published a report that analyzes the development of cryptocurrencies in various regions around the world. According to statistics, North America buys and holds more Bitcoins than any other region. Bitcoin also accounts for the largest share of crypto asset activity in the United States with 72% of total transactions.
The blockchain analytics company Chainalysis published an excerpt from the firm’s upcoming “2020 Geography of Cryptocurrency Report” which shows an interesting perspective of geographic crypto hot spots.
Chainalysis: Geography of Cryptocurrency Report
In 2020, East Asia is the most active region in the world in terms of the volume of cryptocurrency that has been moved by onchain. The report states that East Asia is followed by Western Europe and North America.
“North America also hosts a growing class of institutional investors moving even larger transfers of cryptocurrency than those we typically see from professional traders,” the Chainalysis report highlights. “The institutional share of the market has grown over the past few years, which can be seen by many to legitimize cryptocurrency as an asset class.”
“As of June, approximately 90% of North America’s cryptocurrency transfer volume came from professional-sized transfers, which we categorize as those above $10,000 worth of cryptocurrency,” the report adds.
The report highlights a recent survey by Fidelity Investments, which shows that institutional investors’ interest in crypto is growing exponentially. Regarding portfolio strategy, Chainalysis states that “North American investors prefer Bitcoins.”
In terms of transaction volume, BTC is the most sought-after crypto asset in every part of the world. In East Asia, however, the use of altcoins is much more pronounced.
They are trading more in East Asia
Data Chainalysis further states that users in North America buy and hold more than users in East Asia. Trading platforms in East Asia have twice the “trading intensity” of North America. The analyst also points out that North American balances by address also show that the buy and hold strategy is widely used in the region.
“Despite North America-based addresses making up roughly 15% of all cryptocurrency activity globally as of June 2020, behind Western Europe at 17% and East Asia at 31%, North American addresses lead the way in cryptocurrency balances,” the Chainalysis report claims.
“North American addresses hold 29% of all cryptocurrency currently parked at service-hosted addresses, compared to 16% for East Asia-based addresses as of the end of June,” the “2020 Geography of Cryptocurrency Report” concludes. “Those figures would suggest that North America-based users tend to let the cryptocurrency they acquire sit in their wallets and accumulate, while East Asia-based users tend to trade it more frequently.”
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