Although the cryptocurrency market’s total market capitalization plunged by half, the scale of actual economic activity declined only slightly.
According to Chainalysis, global crypto economic activity totaled $9.4 trillion in the 12 months through the end of June this year, down 1.6% from the previous year. Over the same period, total crypto market capitalization fell by $2.1 trillion, or about 50%.
Funds flowing into crypto services, including exchanges and decentralized finance (DeFi), declined by 4.3%. By contrast, peer-to-peer (P2P) transaction volume surged 302.9% year on year to $228.7 billion.
Cross-border stablecoin transactions also increased 77.5% to $220.3 billion. Even as the market’s overall value fell sharply due to declining prices, the expansion of P2P and stablecoin-based transactions limited the decrease in the scale of crypto economic activity.