According to a new Chainalysis analysis, the United Kingdom has led the way in cryptocurrency activity among European countries over the last year, receiving more than $170 billion in value.
According to Chainalysis, the Central, Northern, and Western areas of Europe (CNWE) have the world’s largest cryptocurrency economy, receiving over $1 trillion in bitcoin in the last year.
The region accounted for almost 25% of all worldwide bitcoin activity, fueled by strong corporate interest in the DeFi industry.
According to Chainalysis, CNWE managed to take the top spot in this year’s rating after finishing the second previous year behind Eastern Asia.
“The majority of the growth was driven by an influx of institutional investment, as seen by large deals, while retail activity rose as well. Perhaps most intriguing is CNWE’s one-of-a-kind position as an international center in the global cryptocurrency economy “Researchers from the chainalysis group described their findings.
“CNWE is the most important cryptocurrency trading partner for every other region we studied, sending at least 25% of all value received by other countries, including a stunning 34% for North America.”
Beginning in July 2020, there was a significant increase in the number of large institutional-sized deals. Large institutional-sized transactions are defined by Chainalysis as transfers of more than $10 million in cryptocurrency.
The value of major institutional-sized transactions increased from $1.4 billion in July 2020 to $46.3 billion in June 2021.
Over the recent year, DeFi platforms have dominated large institutional-sized transfers. The majority of the transactions used Ethereum and wrapped Ethereum, according to Chainalysis, which is often utilized in DeFi protocols.
“In most months, DeFi protocols account for three to four of the top five services, with Uniswap, Instadapp, and dYdX making frequent appearances. Meanwhile, Binance and Coinbase continue to be the most popular centralized exchanges “Chainalysis has been discovered.
A number of institutional investors are also becoming interested in bitcoin through a technique known as “staking,” in which firms lend their cryptocurrency to DeFi protocols in order to obtain liquidity. Stakeholders are then paid interest on the cryptocurrency that is lent to borrowers.
“As the largest counterparty to every other region, CNWE is an important source of liquidity for cryptocurrency investors worldwide. North America is CNWE’s largest trading partner, followed by Eastern Asia, Central, and Southern Asia, and Eastern Europe “Chainalysis has been discovered.
“CNWE has greater service overlap than any other region, with particularly strong ties with Eastern Europe, North America, and Central and Southern Asia. eToro, Bitstamp, and CryptoKitties are among the services that contribute to this dynamic.
We believe that this dynamic represents a convergence of institutional investors and professional traders on a few platforms in particular regions, such as North America.
On the other hand, we believe that service overlap in places such as Eastern Europe and Central and Southern Asia is also driven by remittance payments sent from CNWE, as this would match remittance activity seen in the fiat world.”
The United Kingdom leads the list of area countries in terms of value received, with over half of its value transmitted to DeFi protocols. The following four countries on the list were France, Germany, the Netherlands, and Switzerland.
Stablecoins account for approximately 25% to 30% of total transaction volume in almost every country, whereas most countries have between 8% and 11% invested in altcoins.
According to Chainalysis, Ethereum and wETH are the most popular cryptocurrencies in practically every country, accounting for over 40% of transaction value, followed by Bitcoin at 27% in the UK. Germany sees around 28% of its transaction volume in Bitcoin, whereas France has only 20%.
“Overall, while there are minor differences in the exact breakdown of activity across individual countries, one thing is clear: CNWE has become the world’s largest cryptocurrency market, and its growth over the last year has been largely driven by institutional investors and other whales moving into DeFi,” Chainalysis said.