Crypto adoption is growing.
This is something that many know based upon the antidotes. We are seeing how many people are now getting involved even if through traditional Wall Street entry points.
The mystery surrounding this new asset class is waning. People are starting to realize this is not something that is going to reside on the fringe.
Actually, I do not believe that crypto is a new asset class. Instead, I look at tokenization as the process that will swallow all asset classes. Enter real world assets (RWA).
This is the first wave of token "swallowing" that we will see. To be fair, stablecoins will fulfill that but I view this differently since currency isn't part of what I would define as an asset class. We are dealing with investment vehicles such as stocks, bonds, and even real estate.
Leading the charge are institutions which should surprise nobody.
The United States outpaced the rest of the world in overall crypto usage.
US crypto adoption surged 50% this year, hitting over $1 trillion in volume as retail and institutional interest skyrockets.
Again, this mirrors the sense that many of those involved in the industry had. Having the data back it up is a big step forward. No doubt stablecoins have fed into this, with the volumes growing each month. The passage of the GENIUS Act in the US only makes it more "acceptable".
That said, the retail adoption rate in the United States was not the front runner. Here we see a different region stepping up.
India and Southeast Asia outpaced the US in grassroots crypto use, showing massive on-chain growth despite lower capital.
Crypto has always offered great potential to 2nd and 3rd world nations. While few actually "like" the banks. in the developed countries, they work rather well. The system has a degree of trust where, in spite of the antics the bankers always pull, most have safety. This is not the case in many other countries.
A digital wallet helps to bypass this. For most, it serves 90% of the reasons to use a bank. The majority send, receive, and store money. That is what a bank is used for. A wallet does the same thing. Now, with the access to stablecoins, this is enhanced.
Another feature feeding this in non-US areas is the ability to hold US dollar denominated assets. A stablecoin is most likely to be USD, with USDT and USDC leading the way. More than 90% of the stablecoins in existence are USD.
Is this a shift in public sentiment?
We are seeing massive growth. The speculation associated with Bitcoin and Ethereum served well for years. It is still a large part of the market.
What we are seeing is a move away from the casino mentality. This is hard for many to accept. The reality is most of the population does not exist in this realm. If they are involved in finance, which the overwhelming percentage are not, it is seeking a steady return.
Payments are where almost everyone is involved. We all have bills to pay. This means that back end operations have to settle. For most, this means the banking system.
Crypto is starting to step in.
“Crypto transaction volume in the US rose by roughly 50%, compared with the same period in 2024, to over USD 1 trillion. This cements the US’s position as the largest crypto market globally in absolute terms… highlighting that this growth is part of a sustained, multi-year trend,” it claimed.
That last part is vital. This is not a one off situation. We are seeing a larger trend emerging, over a period of years.
A new financial system is emerging. It is one that is hybrid, merging crypto with Tradfi. Ultimately, I believe the former will eat the latter.
