Q1 crypto volumes fall; stablecoins lift emerging markets

TRM Labs reported that global crypto retail volume fell 11% year-on-year to $979 billion in the first quarter of 2026. The decline marked the second consecutive quarter of contraction and showed a split between slower adoption in developed markets and steadier use in economies with weaker fiat systems.

The United States recorded the largest retail volume at $212 billion in Q1. South Korea followed with $69 billion, Russia $48 billion, India $46 billion and Turkey $40 billion. Among major markets, India posted the smallest decline at 6% year-on-year, while Turkey recorded 7% growth and entered the top five. South Korea and Germany saw the largest drops, down 28% and 25% respectively.

Stablecoins accounted for much of the activity that remained in Q1. Use of dollar-linked stablecoins and euro-denominated stablecoins rose, supporting peer-to-peer and cross-border payments in markets with limited access to reliable fiat channels. Euro-denominated stablecoins increased about 12-fold between January 2025 and March 2026 to roughly $777 million per month.

Venezuela moved up to 17th place globally with $17.9 billion in retail volume. TRM Labs found transactions in Venezuela were concentrated in stablecoins rather than speculative trading, with peer-to-peer order books used as common settlement rails.

Macro and geopolitical factors influenced volumes. In several developed markets, demand for risk-on assets weakened as investors shifted toward equities and gains in precious metals, which coincided with lower crypto trading volume. In some emerging markets, crypto served as an ad hoc payments system where capital controls or weak monetary policy limited fiat options. Iran was an exception among emerging markets: escalating sanctions, a rise in cyberattacks, the loss of local platforms such as Nobitex and sanctions on exchanges including Zedcex and Zedxion contributed to reduced activity.

Thomas Probst of Kaiko Research observed: “Crypto no longer traded as an isolated asset, but as part of the broader global risk environment.”

Regulators in several jurisdictions raised concerns about oversight, custody and potential systemic risk from stablecoins. Despite those concerns, stablecoins remained a common tool for cross-border payments and peer-to-peer exchange in markets with constrained financial infrastructure.