- U.S. exchanges control only 8.6% of global ETH trading and 11.5% of BTC trading volume.
- Non-U.S. exchanges dominate the global trading volume for major cryptocurrencies like ETH, BTC, ADA, and SOL.
- Regulatory uncertainties in the U.S. are driving traders to seek platforms in Asia and Europe.
The global cryptocurrency trading volumes saw a significant shift resulting in decreased activity through U.S.-based exchanges. Major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) experience minimal U.S. trading volume volumes while the worldwide market shares remain negligible. This development results from global market forces that show non-U.S. exchanges taking over leadership in worldwide cryptocurrency markets.
U.S. Share in ETH and BTC Trading Volume
Based on latest Kaiko data only 8.6% of worldwide ETH trading occurs through U.S. exchanges. The United States holds control over 11.5% of total Bitcoin trading volume which accounts for global BTC trading volume.
The figures indicate a substantial decrease from past years during which the United States maintained central dominance in the international crypto trading sector. The rest of these digital tokens are traded by exchange platforms which operate beyond U.S. territorial borders (ETH: 91.4%; BTC: 88.5%).
The trend of diminishing U.S. dominance extends to other cryptocurrencies as well. For example, Cardano (ADA) and Solana (SOL) also show a similar distribution of global trading volumes. U.S. exchanges account for 12.1% of ADA’s global trading volume, and 12.3% of SOL’s. In both cases, the majority of trading, 87.9% for ADA and 87.7% for SOL, occurs on exchanges based outside the U.S.
Factors Behind the Shift
Various elements drive the decrease in the U.S.’s position as a market leader for exchange activity. Growing regulatory uncertainties in the U.S. market led agencies such as the SEC to enhance their oversight activities.
Many trading entities together with institutions moved their operations to regulatory-friendly environments because of the current regulatory uncertainties in the United States. Global exchanges established in Asia as well as Europe now offer powerful competitive alternatives to traders which has led to a broad reduction of U.S. market power.
The diminishing U.S. crypto exchange market segment now presents significant difficulties to American cryptocurrency operations. U.S.-based cryptocurrency exchanges must reassess their plans because the rising global competition reduces their market position within this globalized space. Americans could recover part of their market position through better standards and new options in their crypto exchange services.
