Turkey Surpasses the United States in Stablecoin Purchases Relative to GDP
Turkey has emerged as the global leader in stablecoin purchases relative to its gross domestic product (GDP), surpassing the United States, according to a report by blockchain intelligence firm Chainalysis. The report, titled “The 2024 Crypto Spring Report,” reveals that stablecoin buying in Turkey accounted for 4.3% of its GDP between April 2023 and March 2024, making it the world’s largest spender of stablecoins in proportion to its GDP.
According to Kim Grauer, Director of Research at Chainalysis, Turkey’s GDP stood at $907 billion in 2022, while stablecoin purchases totaled $38 billion during the specified period. Grauer noted that these purchases included any exchange between the Turkish lira and a stablecoin in either direction. The report highlights the notable presence of stablecoins in the Turkish economy compared to other economies analyzed by Chainalysis. Stablecoin purchases in Thailand and Georgia accounted for 1.3% and 0.7% of their respective GDPs during the same period.
In terms of stablecoin purchases relative to GDP, the United States ranks fourth with a share of 0.5%, followed by the European Union with 0.3%. The report also reveals that stablecoins, including Tether (USDT) and USDC (USDC), have surpassed other cryptocurrencies like Bitcoin (BTC) and Ether (ETH) in terms of overall transaction volume. Stablecoins represent more than 50% of all transaction activity in recent months. Analysts believe that the significant growth of stablecoins in transaction activity indicates their high utility in facilitating everyday transactions beyond trading.
Chainalysis findings also highlight the United States as the largest jurisdiction for stablecoin transactions in the past year. In March 2024, fiat purchases of stablecoins in the U.S. exceeded $20 billion, marking a 200% increase since April 2023. Other major jurisdictions, including the European Union, Turkey, the United Kingdom, Brazil, and Thailand, have also witnessed a substantial rise in fiat purchases of stablecoins over the past year.
The report suggests that nations are increasingly turning to stablecoins amidst local currency volatility and devaluation. This trend is particularly evident in Turkey, where the inflation rate reached as high as 67% in March. Local experts have previously noted that Turkish residents often resort to stablecoins like USDT to safeguard their savings during times of currency devaluation.
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