Europe has become the most prominent crypto economy as it records over $1 trillion in crypto transactions between July 2020 and June 2021. This is a big number and shows that we are really going somewhere with cryptocurrencies. Europe has seen significant adoption and growth from DeFi as they have been a primary investment choice for many people there. Central, Northern and Western Europe have been the centre of this growth, as shown by blockchain analytics from Chainalysis.
The Chainalysis report
The report on Europe being the largest crypto economy was released on Tuesday by Chainalysis. They found that between July 2020 and June 2021, the Central, Northern and Western part of Europe recorded 25% of the activity. A few regions in Europe accounting for 1/4th of the entire global activity is a big deal and shows how receptive the inhabitants of the place have been to crypto. The report from Chainalaysis also shows that DeFi saw a significant surge in trading volume in these regions. All forms of transitions from trade, investment and business transactions are counted in the $1 trillion.
Europe has also been one of the primary continents to see major institutional investors. The report shows that the transaction value in the same rose from $1.4 billion in July 2020 to $46.3 billion in 2021. And in terms of specific regions, the UK is the largest crypto economy in Europe, with over $170 billion in transactions. Like the rest of the regions, DeFi is also the most preferred here, with about 49% volume.
The institutional effect
One should also note that most of the volume comes from institutional investing in the UK. And it has been the main driving force for the growth of crypto in Europe. From large firms, banks, family offices to institutional investors, almost all of them have in some way invested in crypto. It was also found out that the peak of transactions in crypto happened in May 2021 when BTC was at its new ATH. And we can safely assume that this is not the case with just Europe but other countries as well.
It was also found that India and Pakistan are some of the leading countries in terms of crypto adoption. What are your thoughts on Europe as the largest crypto economy as it records over $1 trillion in crypto transactions? And do you think that any other region could take over anytime soon? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.