According to Chainalysis, Europe is becoming the largest crypto economy with more than $ 1 trillion in transactions

The region of Central, Northern and Western Europe, or CNWE for its acronym, became the block for the world’s most active cryptosystem and, according to new research, moved more than a trillion dollars in digital assets from blockchain analytics firm Chainalysis during the year.

The report released on Tuesday found that The CNWE region accounted for 25% of global cryptocurrency activity between July 2020 and June 2021. The region saw a sharp increase in transaction volume in all sub-categories of the crypto market, especially in decentralized financing or DeFi.

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

According to Chainalysis, Europe is becoming the largest crypto economy with more than $ 1 trillion in transactions
According to Chainalysis, Europe is becoming the largest crypto economy with more than $ 1 trillion in transactions

Europe has also become a hotbed for institutional investment, with transaction values ​​rising in this category $ 46.3 billion in June 2021, compared to just $ 1.4 billion in July 2020. Perhaps surprisingly, the UK is the largest crypto economy in the region with $ 170 billion in transactions. Almost half or 49% of the value was sent over DeFi protocols.

A secular bull market for Bitcoin (BTC), The growth of competing smart contract platforms and the advent of decentralized funding contributed to the huge rally in cryptocurrencies during the study period. Unsurprisingly, CNWE region’s cryptocurrency market activity peaked in May 2021, during the heyday of the bull market, a month after Bitcoin hit $ 64,000.

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

Beyond the developed economies of Europe, the Chainalysis study documented the increasing acceptance of cryptocurrencies in emerging countries. The Chainalysis 2021 Global Cryptocurrency Adoption Index has selected Vietnam, India, and Pakistan as the top adoption countries based on value obtained in the chain, retail transactions, and trade volume.

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