A new report from MiQ Digital indicates that demand for cryptocurrency has increased the most in the U.S. states of Hawaii and California in 2021.
According to data gathered from Google Trends comparing the average interest from 2020 to 2021, MiQ Digital reported that Hawaii had seen a more than 687% increase in demand for cryptocurrencies over that in 2020, even more than runner-up state California at 655%. However, users are most likely to find businesses in California that are willing to accept crypto payments, with 440 currently doing so compared to 180 in Florida — the home of the Bitcoin 2021 conference.
“Cryptocurrency may not be part of the mainstream economy just yet, but demand is so high in some states, U.S. financial authorities are looking at ways to regulate the market,” said the report. “Around 6% of the U.S. population now use or own crypto, and the trend is growing.”
The report added that Dogecoin (DOGE) had the greatest increase in price, jumping 6,900% since December 2020. However, data suggests that demand in Bitcoin (BTC) increased the most across the U.S. in Hawaii and Nevada, with the significantly smaller 51% rise in price over the same period. At time of publication, the price of DOGE and BTC are $0.31 and $37,816, respectively.
Businesses and crypto retail investors are likely drawn to different states for different regulatory frameworks. Because the U.S. government has largely left the matter of regulating crypto to individual states — the U.S. constitution allows for this distinction between federal and state law — a state like Texas with fewer regulations on its power grid may look more appealing to crypto miners. Wyoming is seemingly attracting blockchain firms with the work done by pro-crypto Senator Cynthia Lummis and Caitlin Long, CEO of digital bank Avanti Bank & Trust.
However, lawmakers in Hawaii have also been working to establish the state as more of a regulatory safe haven for crypto traders and businesses. Early last year, the state began considering a bill that included support for banks custodying digital assets. Last March, Hawaii also established a digital-currency sandbox aimed at attracting crypto businesses to the state.