In 2026, global retail crypto activity continued to fall, driven primarily by macroeconomic tightening and reduced retail participation. According to blockchain intelligence company TRM Labs, retail crypto activity in the first quarter of the year reached US$979 billion, marking the continuation of a two-quarter contraction, and following a significant 23% drop in Q4 2025. This signals a sustained pullback in retail engagement across the sector.

Compared to the same period last year, global retail crypto activity went down 11%.

According to the firm, this downturn has been largely fueled by a global risk-off environment characterized by uncertainty surrounding US tariff policy, a strengthening US dollar, and elevated real yields. These factors have put pressure on the price of cryptocurrencies, with Bitcoin declining 22% over the quarter, ending near US$68,000.

This pattern is consistent with how crypto had behaved across previous market cycles. Bitcoin returns are more often than not aligned with broader macro regimes, with strong performance during periods of liquidity expansion and sharp drawdowns during risk-off episodes, such as the 2022 tightening cycle.

Steep declines in Asia

Across the top ten countries by retail volume in Q1 2026, South Korea recorded the steepest decline. Ranking second globally, South Korea saw its volume fall 31% year-over-year (YoY) to reach US$66.6 billion in Q1 2026 from US$96.1 billion a year prior. This sharp contraction reflects the outsized role of domestic retail speculation in a market sensitive to global risk sentiment, the report says.

Vietnam and Ukraine also experienced significant downturns, each recording YoY declines of 22%. Retail volume in Vietnam dropped to US$31.6 billion in Q1 2026 while Ukraine fell to US$31.6 billion. Despite these declines, the two countries remained significant players in the global retail crypto landscape, ranking eighth and ninth, respectively, in Q1 2026.

In Q1 2026, the US maintained its position as the largest market for retail crypto volume at US$213.3 billion. The figure is nearly three times the next largest market, South Korea. Following these is Russia with a volume of US$47.5 billion in Q1 2026, sustained in part by activity on Grinex, which filled the void left by the enforcement actions against Garantex.

Crypto volumes sustained in Russia despite sanctions

Garantex was sanctioned by authorities for facilitating money laundering and illicit financial activity. Investigations by the US Treasury found that the exchange had received millions of dollars in crypto transactions associated with darknet markets, ransomware, and state-sponsored hacking groups.

Grinex emerged as a successor or rebrand of the sanctioned Russian exchange, sharing infrastructure, funds, and activity patterns. Although registered in Kyrgyzstan, Grinex has strong ties to Russia and is one of the largest exchanges for exchanging Russian rubles for cryptocurrencies.

The US has stated that Grinex is helping customers circumvent sanctions via a RUB-backed stablecoin called A7A5. This comes as Russia’s major banks are being disconnected from the international SWIFT system following EU sanctions related to the military campaign in Ukraine, prompting the nation to develop sophisticated crypto infrastructure to facilitate foreign trade.

In April 2026, however, Grinex announced that it had suspended its operations after assets worth RUB 1 billion (US$13.1 million) were stolen during a cyberattack, Reuters reports.

Escalating pressure on Iran

In Q1 2026, retail crypto activity in Iran unfolded amidst heightened geopolitical tension and escalating sanctions enforcement targeting the country’s financial infrastructure. In January, the US Treasury took the step of sanctioning two crypto exchanges, Zedcex and Zedxion, for facilitating transactions tied to the Islamic Revolutionary Guard Corps (IRGC), marking the first time digital asset platforms were designated for operating in Iran’s financial sector.

Consequently, crypto activity in Iran fell significantly. Iranian-attributed crypto volumes declined 59% from a peak of US$2.1 billion in Q4 2024 to US$510 million in Q1 2026, reaching their lowest levels in the past year.

Turkey as a top mover

Compared to its international counterparts, Turkey performed relatively better, rising from seventh place in Q1 2025 to fifth in Q1 2026 despite a slight 7% YoY decline in volume to US$34.9 billion.

Last year, Turkey dominated value received in the Middle East and North Africa (MENA) with nearly US$200 billion between July 2024 to July 2025. The figure is almost four times that of the United Arab Emirates (UAE), which follows as the second-largest market in the region at US$53 billion, according to blockchain analysis firm Chainalysis.

These large volumes are being partly attributed to Turkey’s challenging economic circumstances, including currency devaluation and inflationary pressures. This has driven crypto adoption for economic necessity, serving as an alternative financial infrastructure and an investment vehicle to escape financial hardship.

Chainalysis estimates that gross crypto inflows in Turkey totaled approximately US$878 billion between early 2021 and mid-2025, outpacing all other regional markets.

Stablecoin use surges in Venezuela

Another bright spot this year is the rise of crypto activity, and most particularly stablecoins, within the sanction-constrained economy of Venezuela.

In January 2026, US authorities escalated pressure on the Maduro regime through a superseding indictment and a military operation that resulted in Maduro’s capture and removal from power, intensifying uncertainty around the country’s political and economic outlook.

Against this backdrop, Venezuela witnessed a relative surge in crypto activity. In Q1 2026, the country rose to become the 17th largest retail crypto market by volume with US$17.9 billion, up from 22nd in Q1 2025.

In particular, stablecoins, particularly those pegged to the USD, dominated Venezuelan crypto activity, accounting for a large share of transaction activity in the country. Three structural factors are driving this pattern, namely local currency instability, capital controls with restricted banking access, and the longstanding habit of using of informal exchange channels.

EUR-denominated stablecoins gain ground

Though globally, USD-denominated stablecoins are seeing a decline in volume, EUR-denominated stablecoins are experiencing significant growth.

In January 2025, USD stablecoins processed at retail virtual asset service providers (VASPs) totaled US$310 billion. By March 2026, that figure stood at US$274 billion. In contrast, EUR-denominated stablecoins grew from US$69 million in January 2025 to US$777 million in March 2026, representing a 12-fold increase over 15 months.

TRM Labs attributes this growth to several factors, including the introduction of the EU’s Markets in Crypto-Assets (MiCA) framework, which is providing clear rules for stablecoin issuance and compliancey; ongoing macroeconomic uncertainty and US-centric financial conditions prompting demand for diversification; and European exchange and payment providers increasingly supporting EUR-denominated products, making it easier for users to enter and exit crypto markets without converting into USD.

Featured image: Edited by Fintech News Switzerland, based on image by MDStudio via Magnific