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

[ad_1]

The Central, Northern and Western Europe 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 released on 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, in particular decentralized finance or DeFi. .

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

Europe has also become a hotbed of institutional investment, with deal values ​​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 mainly driven by growth in institutional investment, based on large transfers that drive the bulk of its deal volume, Henry Updegrave, senior director of content marketing at Chainalysis, told Cointelegraph. .

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 cryptos 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 from Bitcoin hitting $ 64,000.

Data from the chain analysis corroborates 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 Bitcoinand 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. Chainalylsis Global Crypto Adoption Index 2021 named Vietnam, India and Pakistan as the top adoption countries based on value received on chain, retail transactions and trade volume of peer-to-peer exchange.

[ad_2]