The original article is posted on CoinMarketCap.
We live in the age of globalisation.
Nowadays, every aspect of human being is mainly dictated by global tendencies and cross-nation exchange. And the cryptocurrency market is not an exception.
But which region holds more power upon your trades?
This article dives into the crypto landscapes of three driving forces of digital assets: Europe, Asia, and the USA. Discusses, which is a main trendsetter, and which creates a greater impact.
But crucially: assesses why geography is everything in crypto, despite its decentralised nature.
When it comes to crypto trading, location is everything.
Market makers, the backbone of trading activity, operate under vastly different conditions depending on where they’re based.
Some regions, particularly emerging economies, see crypto as a way to gain financial independence from traditional banking systems and the US dollar. Others, like the US and Europe, focus on regulatory control and institutional integration.
Meanwhile, market makers juggle high-speed connectivity, 24/7 operations, and managing multiple exchanges across time zones. Their location ultimately dictates which markets have the most power.
“Geography is the pulse of crypto”, said Vincent Liu, Chief Investment Officer at Kronos Research, exclusively for the article. “Where a firm operates determines its access to markets, infrastructure, and talent ultimately defining who leads in this industry”.
Cases in point: in the US, its Coinbase dominates liquidity, while in Asia, its local players help fuel the region’s expanding trading influence.
As crypto continues to globalize, the question isn’t just who’s trading—it’s where the liquidity is being built.
The crypto market isn’t driven by a single force. It’s a complex intersection between regions, each shaping liquidity, regulation, and adoption in its own way. So, who’s really in control?
When it comes to crypto, the United States operates as both a powerhouse and a paradox. It wields enormous influence through regulatory policies, institutional investors, and USD-backed stablecoins, accounting for 90% of the global stablecoin market cap and 70% of trading volume in Europe.
“The U.S. remains a dominant force in global finance, with USD-backed stablecoins comprising a majority of the global stablecoin market cap, reinforcing crypto’s financial backbone”, believes Vincent Liu. “While the U.S. regional power is becoming more evenly distributed”
Institutional dominance is undeniable. Around 28% of American adults (roughly 65 million people) own crypto, and 73% of US holders plan to continue investing in 2025. The rise of Bitcoin ETFs has further cemented institutional involvement, with significant portions of Bitcoin’s supply being absorbed by funds and asset managers.
Yet, the US market remains surprisingly insular. While home to Coinbase and Kraken, two of the largest regulated exchanges, its exchange landscape lacks a truly global reach. Unlike Asia or Europe, where platforms operate across multiple jurisdictions, the US crypto scene remains largely domestic, limiting its ability to dictate global liquidity flows.
Asia isn’t just participating in the crypto market – it applies for leading it. The region, particularly Central & Southern Asia and Oceania (CSAO), dominates global adoption, with seven of the top 20 countries for crypto usage located here.
“Asia’s stock and crypto businesses thrive due to its liquidity and retail momentum,” says Vincent Liu.
Indeed: unlike the US and Europe, which have seen declining retail engagement, Asia’s retail activity continues to surge, growing 6.4% year-over-year, while the US and EU dropped by -5.7% and -0.7%, respectively.
Even with China’s regulatory crackdowns, the country once controlled 70% of global crypto mining power, showcasing the region’s deep-rooted influence. Meanwhile, Asian exchanges set the tone for global liquidity, with Binance, OKX, and Bybit shaping trading volume across borders.
With institutional flows concentrated in the US, Asia has become the real supplier of market depth and liquidity, making it the bedrock of global crypto trading.
“We see Asia emerging as a macroeconomic hub through its critical role in global trading volume underpinning even Europe’s markets and its capacity to merge regulatory flexibility with a vibrant investor community”, summarises Liu.
Europe has emerged as the global leader in crypto regulation, setting the standard with MiCAR, a framework designed to bring clarity to digital asset oversight.
“Europe’s MiCA is redefining the global crypto market by establishing regulatory clarity”, says Liu. “We see it enhancing trust and institutional adoption, though its strict stablecoin rules pulling liquidity toward Asia and less-regulated hubs, altering the global balance.”
While this regulatory stability attracts institutional interest, Europe still lacks true market dominance, as US-based crypto issuers and intermediaries continue to shape its financial landscape.
Despite this, the region has seen explosive growth in crypto investment products – assets under management in ETPs surged from $600 million to $16 billion, with Bitcoin (54%) and Ethereum (15%) leading investor preferences. However, trading volumes remain lower than in the US and Asia, limiting its overall influence.
Europe also depends heavily on Asian exchanges for liquidity, with Binance, OKX, and Bybit facilitating much of the region’s trade.
The global crypto market operates as an interconnected ecosystem, where each region’s strengths contribute to the industry's overall evolution. Asia’s deep liquidity and retail adoption create the foundation for active market participation, while North America's institutional influence legitimizes crypto as an asset class. Meanwhile, Europe’s regulatory leadership ensures long-term stability and investor protection.
However, beyond adoption rates and trading activity, virtual capitalisation remains a defining factor in assessing regional dominance. One of the recent articles, analyzing Trump’s impact on crypto volatility, examined the fluctuations in exchange capitalizations following major economic shifts. The results were clear: capital flow is not just reactive – it is directly influenced by regional regulatory policies and supply dynamics.
The exchanges that performed best in terms of stability and liquidity reflected their respective region’s core strengths. Coinbase (North America) maintained high institutional inflows despite regulatory pressure, Binance and OKX (Asia) continued to dominate in volume, benefiting from deep liquidity pools, while WhiteBIT (Europe) reinforced its position as the region’s leading exchange with a strong regulatory focus.
Crucially, according to the formula by Aaron Watts, the aforementioned exchanges vastly differ in terms of the virtual capitalisations, reflecting a power distribution between regions:
Binance (Asia): $170 billion (from $220 billion in December 2024)
WhiteBIT: $30 billion (from $38.9 billion in December 2024)
Coinbase: $64 billion (from $81 billion in December 2024)
This highlights a critical takeaway: regional policies and crypto supply mechanisms have a direct impact on exchange capitalization. Markets with clear regulatory frameworks attract institutional trust, while those with strong liquidity mechanisms sustain high trading volumes. Ultimately, the interplay between regulation, supply, and capital flow determines which regions hold the most influence.
Understanding these regional dynamics is essential for traders and investors seeking to navigate an increasingly complex and interdependent market. Those who recognize these patterns will be better positioned to anticipate market trends and allocate capital effectively.
Paul Osadchuk
