Crypto Market Cap Halves, But Everyday Activity Stays Steady

The cryptocurrency market's capitalization took a hit in the past year, falling by about 50 percent to $2.1 trillion. However, according to Chainalysis' Global Crypto Adoption Index report, actual economic activity declined only 1.6 percent.

This discrepancy is attributed to the growing use of cryptocurrencies for everyday purposes such as paying suppliers and remitting money to home countries. Stablecoin-based international remittances rose 77.5 percent to $220.3 billion from $124.2 billion, while domestic P2P transfers increased by 302.9 percent to $228.7 billion.

Chainalysis noted that the expansion in cross-border transactions was led by payments averaging about $3,000, closer to everyday uses than institutional investor activity. The company also released its grassroots crypto adoption rankings, which placed Brazil first, the United States second, and Nigeria third.