Europe Becomes Biggest Crypto Economy With Over $ 1 Million In Transactions - Chainalysis

The Central, Northern and Western European region, or CNWE, has emerged as the most active cryptocurrency bloc in the world, receiving mo...



The Central, Northern and Western European region, or CNWE, has emerged as the most active cryptocurrency bloc in the world, receiving more than $ 1,000 billion in digital assets in the past year, according to a new research from blockchain analytics company Chainalysis.

The report, which was published Tuesday, found that the CNWE region accounted for 25% of global crypto activity between July 2020 and June 2021. The region saw a sharp increase in transaction volume across all crypto subcategories, especially Decentralized Finance or DeFi .

Chainalysis describes crypto transactions as anything that involves trading, investing, and doing business transactions.

Europe has also become a hotbed for institutional investment, with the value of deals in this category reaching $ 46.3 billion in June 2021, up from just $ 1.4 billion in July 2020. Perhaps surprisingly, the Kingdom United is the region’s largest crypto economy with $ 170 billion. value of transactions. Almost half, or 49%, of the value was sent via DeFi protocols.

“The UK’s growth is primarily driven by growth in institutional investment, based on large transfers that are the source of most of its trading volume,” Henry Updegrave, senior director of the UK, told Cointelegraph. Chainalysis content marketing.

A secular bull market for Bitcoin (BTC), the growth of competing smart contract platforms and the arrival of decentralized finance all contributed to the massive rally in crypto during the study period. It’s no surprise that CNWE’s crypto market activity peaked in May 2021 at the height of the bull market, which was one month away. Bitcoin hits $ 64,000.

Chainalysis data corroborate a a growing body of evidence showing that large institutional investors have become a driving force within crypto. Wealth managers, family offices and other institutional players have invested billions of dollars in Bitcoin (BTC) and Ether (ETH) investment products offered by Grayscale, CoinShares, 21Shares and others.

Related: Crypto asset manager Cobo raises $ 40 million to launch DeFi-as-a-service

Beyond the advanced economies of Europe, Chainalysis research has documented the growing adoption of crypto in emerging markets. The Chainalylsis Global Cryptocurrency Adoption Index 2021 named Vietnam, India and Pakistan as the top adopters based on value received in chain, retail transactions and volume of peer-to-peer exchange.