Global cryptocurrency adoption slowed in the first quarter of 2026, as macroeconomic pressures and geopolitical tensions dampened retail activity. TRM Labs' Global Cryptocurrency Adoption Index reported an 11% year-over-year decrease in retail trading volume to $979 billion, marking the second consecutive quarter of decline. The downturn was attributed to a stronger U.S. dollar, rising interest rates, and a broader risk-off environment, which collectively suppressed retail participation. Bitcoin (BTC) also saw a 22% decline this quarter, continuing its downward trend from a high above $126,000 at the end of 2025. The report highlighted a regional divergence in cryptocurrency adoption, with developed economies like the U.S., South Korea, the UK, and Germany experiencing the most significant declines. These markets, where cryptocurrencies are primarily speculative, faced higher opportunity costs and weaker risk appetites. Conversely, Turkey defied the trend with a 7% increase in transaction volume, while Latin America and South Asia maintained stable activity. TRM noted that in regions with constrained monetary policies or capital controls, cryptocurrencies serve as a store of value and a shadow dollar system.