CryptoSlate
China generated at least $176 billion in crypto activity in the 12 months through June 2026, with 59.1% moving through domestic peer-to-peer transfers, according to Chainalysis. That P2P share was 3.5 times higher than in the previous period, an unusual pattern in a market where exchanges typically dominate crypto access.
Stablecoin payment activity accelerated from March 2025 and grew for 13 consecutive months. Monthly activity added rose from roughly $240 million to almost $5 billion. Transfers under $100 increased 996%, while transfers of $100 to $1,000 rose 1,057% and those of $1,000 to $10,000 climbed 1,321%.
Why it matters
The figures point to stablecoins being used for repeated payments and settlement, not only held as investments. China-attributed wallets turned over self-custodied stablecoin holdings 33.2 times annually, compared with a global benchmark of 9.3 times. Those wallets held an average of about $3.1 billion but transferred $104.1 billion across 18.1 million transactions.
Chainalysis said tighter integration of China's social-credit system with financial and internet infrastructure could be encouraging some people to transact outside conventional channels. The firm described this as a working hypothesis, not proven causation; blockchain data tracks transfers but cannot establish users' reasons.
Market impact
China's restrictions have not prevented dollar-linked tokens from circulating through direct wallet transfers. That creates a potential challenge for authorities seeking to constrain crypto activity through limits on exchanges and domestic intermediaries.
For stablecoin issuers and crypto services, the activity signals substantial demand, but regulatory restrictions make it difficult to serve directly. The report points to offshore platforms, OTC networks and self-custody as routes for activity. Whether smaller transfers and high wallet turnover persist as oversight expands remains a key measure of this payment economy's durability.
Frequently asked questions
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How much of China's crypto activity moved through peer-to-peer transfers?
Chainalysis estimates that 59.1% of at least $176 billion in crypto activity moved through domestic P2P transfers in the 12 months through June 2026.
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How quickly did China's stablecoin payment activity grow?
Activity grew for 13 consecutive months from March 2025. The monthly amount of new activity rose from roughly $240 million to almost $5 billion.
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What does the reported stablecoin turnover rate indicate?
China-attributed wallets had annual turnover of 33.2 times, compared with a global benchmark of 9.3 times. Chainalysis said this pattern is consistent with stablecoins being used for payments or settlement.
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Can blockchain data prove why Chinese users are turning to crypto payments?
No. Chainalysis described social-credit integration as a working hypothesis, noting that blockchain data shows how assets move but cannot establish why an individual chose a payment method.
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Why could the P2P trend matter to Chinese regulators?
Direct wallet transfers can keep stablecoins circulating beyond exchanges and domestic financial intermediaries, potentially limiting the reach of restrictions focused on those channels.
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