Pennsylvania and Wisconsin Lead Swing States in Rising Crypto Interest

As the U.S. elections inch closer with mixed expectations and frenzy, a recent report from venture capital firm a16z, titled “State of Crypto 2024,” reveals that Pennsylvania and Wisconsin have seen significant growth in crypto interest since the 2020 elections. Based on Google Trends data, these two states are expected to see tight races, ranking fourth and fifth, respectively, in the largest increase in cryptocurrency-related search queries.

2) Crypto has become a key political issue ahead of the U.S. election

Google search trends show rising interest in crypto in several swing states.

Pennsylvania and Wisconsin have seen the 4th and 5th-biggest jumps in crypto search interest since the last election.

Michigan is… pic.twitter.com/ttNd6RI0ez

— a16z crypto (@a16zcrypto) October 16, 2024

Other key swing states, such as Michigan and Georgia, are also experiencing a surge in interest. However, the report notes that Arizona and Nevada, which often swing between Democratic and Republican control, have seen moderate declines in crypto-related searches compared to 2020.

Per a16z, over 40 million Americans now hold cryptos and a handful support candidates with favorable crypto policies. This growing interest is especially manifest in swing states, where 41% of voters identify as Democrats, 39% as Republicans, and 20% as Independents or others. Additionally, 25% of Americans aged 18 to 34 are now crypto holders.

In #Pennsylvania, a state that will be decided by the thinest of margins, @standwithcrypto realizes #CryptoVotersMatter #Bigly! VOTE TO BE HEARD! 💪🏻🇺🇸 https://t.co/PrqqE0t1sQ

— 🇺🇸 David J. Urban 🇺🇸 (@DavidJUrban) October 16, 2024

The report predicts one reason for the rising interest may be the introduction of BTC and ETH exchange-traded products (ETPs): 

“One factor that could have raised people’s crypto interest this year was the listing of Bitcoin and Ethereum exchange-traded products (ETPs). The number of Americans who hold crypto could grow as ETPs such as these broaden investor access.”

These funds, available on major U.S. exchanges, have already amassed $65 billion in on-chain assets as of September 2024. The broadening access provided by such products is expected to further expand crypto adoption among U.S. investors.

The Digital Dollar Debate

One of the biggest crypto matters on voters’ minds is the likelihood of a central bank digital currency (CBDC) in the U.S. While several global central banks—such as those in China, India, Canada, and the UK—have been working on cross-border CBDC projects, the U.S. Federal Reserve has been researching a digital version of the dollar since 2020. Despite this, the initiative has faced resistance from some political candidates and lawmakers.

In the absence of a U.S. CBDC, stablecoins, that is, digital assets pegged to the dollar, have been filling the gap. Per the a16z report, U.S. dollars account for over 99% of stablecoin currency shares. These stablecoin issuers are now among the top 20 holders of U.S. debt, with $92 billion in Treasurys.

3) Stablecoins have found product-market fit

Stablecoins are one of crypto’s clearest “killer apps.”

They did more than double Visa’s transaction volume in Q2 2024.

$8.5 trillion in volume compared to $3.9 trillion during the same period.

📜: https://t.co/OVasX3gvAu pic.twitter.com/6xJ0ZG1gY3

— a16z crypto (@a16zcrypto) October 16, 2024

The report also hints at the significant role stablecoins play in facilitating transactions. In the second quarter of 2024 alone, stablecoin transactions reached $8.5 trillion across 1.1 billion transactions, more than doubling the $3.9 trillion processed by Visa over the same period.