Key Insights
Between January and July 2025, countries such as India, the United States (US), Pakistan, the Philippines, and Brazil emerged as leaders in global cryptocurrency adoption. Notably, the US experienced a remarkable 50% increase in crypto activity during this timeframe compared to the previous year, solidifying its position as the largest cryptocurrency market worldwide in terms of transaction volume. Meanwhile, South Asia became the fastest-growing region for cryptocurrency adoption in 2025, reflecting a significant uptick in user engagement. Even in North Africa, where several nations impose bans on cryptocurrency, adoption has continued to rise.
Stablecoins Surge in Popularity
In August 2025, stablecoins accounted for 30% of all on-chain cryptocurrency transaction volume, achieving record-high annual volumes exceeding USD 4 trillion—an impressive 83% increase compared to the same period in 2024. Between 2024 and 2025, the landscape shifted for non-stablecoin digital assets, where sanctions contributed to an increase in illicit activity, while the use of stablecoins for such purposes declined by 60%. This trend suggests a potential pivot away from stablecoins for evading sanctions.
Methodology of the Crypto Adoption Index
TRM’s Country Crypto Adoption Index for 2025 ranks nations based on their cryptocurrency adoption relative to their economic size. The index merges proprietary on-chain transaction data with an analysis of web traffic patterns, adjusting for global economic disparities. This year’s methodology reflects changes in how on-chain activity is measured, moving from a DeFi-centric focus to one that encompasses more structured services such as exchanges, custodians, and payment providers.
Adjustments from Previous Years
This year’s approach builds on last year’s by refining the measurement of on-chain activity. Previous assessments heavily relied on DeFi-related transactions, but as the cryptocurrency ecosystem has matured, activity has diversified. The current methodology isolates and evaluates transactions linked to organized services while excluding those primarily related to decentralized applications and experimental DeFi projects. This change offers a more comprehensive view of how users interact with institutional players in the crypto space.
On-Chain Volume Attribution for Crypto Intermediaries
The analysis of incoming on-chain volumes focuses on major virtual asset service providers (VASPs) such as exchanges. By utilizing web traffic data as a proxy for geographical attribution, TRM estimates how transaction volumes are distributed across different jurisdictions. This method applies the share of visits to each VASP from various countries to its incoming transaction volume for a more accurate representation of crypto activity.
Economic Context in Global Crypto Adoption
Raw transaction volumes can exaggerate adoption rates in wealthier nations, so TRM adjusts the attributed volumes of each country by their gross domestic product (GDP) per capita using purchasing power parity (PPP) metrics. This adjustment ensures that the significance of crypto activity is contextualized within each economy. For example, a dollar’s worth of crypto holds more weight in a market with lower average annual payments than in one where payments are substantially higher.
Combined Analysis of Crypto Adoption
After completing this comprehensive analysis, TRM creates a composite score that combines on-chain volumes, web traffic data, and economic scaling. Countries are then ranked based on this score, reflecting both the level of cryptocurrency activity and its relative importance within their respective economies. This methodology provides a consistent overview of global crypto adoption, considering both absolute volumes and local economic contexts.
Retail Crypto Adoption Trends
TRM’s findings indicate that retail-driven adoption saw a significant increase in 2025, with retail transactions surging by over 125% between January and September 2024 and the same period in 2025. This uptick suggests that individual users are increasingly influencing the evolution of cryptocurrency, with practical applications like payments, remittances, and value preservation during economic uncertainty driving this trend. Stablecoins have also gained prominence, allowing users to access fiat currencies like the US dollar more readily.
Leading Countries in Crypto Adoption
India, the US, Pakistan, the Philippines, and Brazil are leading the charge in cryptocurrency adoption, with India maintaining its top position for the third consecutive year. The surge in South Asia’s crypto adoption can be attributed to various factors, including a young population’s interest in digital assets and supportive regulatory frameworks.
Growth in South Asia’s Crypto Adoption
Between January and July 2025, South Asia recorded an 80% increase in crypto adoption compared to the previous year, with transaction volumes approaching USD 300 billion. India’s robust position is bolstered by its youthful demographic and burgeoning interest from institutional investors. Meanwhile, Pakistan’s government initiatives, like the establishment of the Pakistan Crypto Council, have also spurred grassroots adoption. Conversely, although Bangladesh has not legalized crypto, underground channels have emerged, driven by restrictive capital controls.
North Africa’s Ongoing Crypto Adoption
Despite several countries in North Africa imposing bans or severe restrictions on cryptocurrency, nations such as Egypt, Morocco, Algeria, and Tunisia continue to rank among the top 50 for crypto adoption. This phenomenon highlights the limitations of blanket bans, which often lead to increased underground activity through peer-to-peer trading and over-the-counter networks.
Stablecoin Usage Trends in 2025
Stablecoins are becoming increasingly integral to global cryptocurrency adoption. Between January and July 2025, stablecoins accounted for 30% of crypto transaction volume, providing stability amid market volatility in emerging economies. Most fiat-backed stablecoins are pegged to the US dollar, with Tether (USDT) and Circle (USDC) dominating the market. Legislative advancements in 2025, including the US GENIUS Act and Hong Kong’s Stablecoin Bill, have further bolstered this sector.
Record Highs for Stablecoin Transactions
As of August 2025, stablecoin transaction volumes reached an unprecedented annual high of over USD 4 trillion, marking an 83% rise from the previous year. The share of leading stablecoins within the overall crypto market also surged by 52%, reflecting their growing significance. Despite concerns about illicit activity, with 60% of such transactions attributed to stablecoins, the vast majority of stablecoin use remains legitimate.
Illicit Activity Trends Among Stablecoins
Investment fraud has been the leading factor in the illicit volume growth of digital assets from 2024 to 2025. However, when excluding stablecoins, sanctions-related activity saw a notable increase. Interestingly, the volume of sanctions-related activity associated with stablecoins dropped significantly, indicating a potential shift in tactics among those seeking to evade such measures.
Conclusion: A Complex Landscape of Crypto Adoption
This year’s report emphasizes that cryptocurrency adoption is influenced by a myriad of factors, reflecting diverse incentives shaped by local economic conditions, user behavior, and regulatory environments. In some regions, adoption has accelerated due to clearer regulations, while in others, it has flourished despite imposed restrictions. This evolution signals a broader integration of cryptocurrency into mainstream finance, with stablecoins emerging as a pivotal element in this ongoing transformation.
About TRM Labs
TRM Labs specializes in blockchain analytics solutions designed to assist law enforcement, national security agencies, financial institutions, and cryptocurrency businesses in detecting and addressing crypto-related fraud and financial crimes. Their platform enables users to trace funds, identify illicit activities, and develop comprehensive threat assessments. Based in San Francisco, CA, TRM Labs is actively hiring across multiple sectors, including engineering, product development, sales, and data science.
