Crypto adoption slows down in developed markets in Q1

Crypto adoption showed signs of slowing down in Q1 2026. The TRM Labs crypto adoption research also noted a rift in usage, with slower adoption in developed countries. 

Crypto adoption largely retained its 2025 patterns, though with notable slowdowns in specific markets. TRM Labs posted its Q1 report, detailing global crypto retail activity. 

In Q1, total global retail volume reached $979B, down 11 % from the same period in 2025. The crypto market has now gone through two quarters of contraction. 

The top 5 countries with the most significant crypto usage are largely unchanged. The USA led all others with $212B in total activity, followed by South Korea ($69B), Russia ($48B), India ($46B), and Turkey ($40B). 

India was the most resilient market, with a 6% loss, much lower compared to developed countries. Turkey entered the top 5 with 7% year-on-year growth.

Stablecoin usage boosted crypto adoption

Some of the growth in Q1 hinged on stablecoin adoption. While stablecoins did not grow by leaps and bounds, they retained their overall growth trend. As Cryptopolitan reported, stablecoins have posed regulatory challenges. Yet those assets also drive multiple fintech tools for P2P and cross-border trading. 

Venezuela climbed to the 17th spot in global adoption, with $17.9B. Usage in the country focused on stablecoins rather than speculative trading. Stablecoins, especially Binance’s P2P payment order book, are one of the primary settlement mechanisms for crypto owners. 

Euro-denominated stablecoins also changed the crypto landscape. Usage grew 12 times from January 2025 to March 2026, reaching $777M per month and accelerating. A shift to EUR stablecoins reflects an attempt to diversify dollar-denominated crypto liquidity. 

Crypto markets reflect geopolitical risk

TRM Labs noted a split in growth between developed and developing countries. In already established, regulated markets, the novelty of crypto wore off. Additionally, interest shifted to the stock market and the record rallies of precious metals. 

The volume declines are not uniform, and adoption may depend on local monetary systems. Developed markets saw crypto compete with well-established domestic capital markets. As a result, South Korea lost 28% of its volumes, and Germany, 25%, for the biggest year-on-year contraction. The slowdown was due to a loss of demand for risk-on assets. 

Emerging markets showed that crypto was still a key tool for creating an ad hoc payment system. Where domestic monetary policy is restrictive or inadequate, stablecoin adoption has grown to provide a secondary layer for storing value and paying in dollar-based terms. Crypto usage in developing countries is not as exposed to global economic cycles. 

The one exception was Iran, where crypto usage in Q1 slowed down due to escalating sanctions and the ongoing war. The country also lost Nobitex to hacks and sanctioned Zedcex and Zedxion, limiting the number of available crypto exchanges. 

As a whole, crypto markets in Q1 were much more responsive to geopolitical factors. TRM Labs discoveries coincide with recent Kaiko research, revealing that crypto was vulnerable to oil shocks. Crypto no longer traded as an isolated asset, but as part of the broader global risk environment, noted Thomas Probst of Kaiko Research.

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