Hassan Maishera
Europe’s crypto-economy is currently the largest
A recent study conducted by blockchain analytics firm Chainalysis has revealed that Europe is currently the most active continent in the cryptocurrency space. The research shows that Europe accounts for $1 trillion of the total $2 trillion cryptocurrency market cap.
Chainalysis said, “Central, Northern, & Western Europe (CNWE) has the biggest cryptocurrency economy in the world, receiving over $1 trillion worth of cryptocurrency over the last year, which represents 25% of global activity. Having ranked second last year, CNWE’s new position in the top spot is the result of tremendous growth starting in July 2020, combined with a relative decline in activity in Eastern Asia.”
Asia, especially China, was previously the number one cryptocurrency continent in the world. However, the recent sanctions imposed by the Chinese authorities have affected the total market share of Asia.
Furthermore, the tight regulations in Japan, Hong Kong and South Korea in recent months have made it tougher for cryptocurrency service providers to operate in Asia. Central, Northern, & Western Europe were the biggest beneficiaries as most crypto investors and traders moved to that region.
The report added that “CNWE’s transaction volume grew significantly across virtually all cryptocurrencies and service types, but especially on DeFi protocols. An influx of institutional investment, signaled by large transactions, drove most of the growth, though retail activity also increased.”
The report pointed out that the massive growth in the cryptocurrency market share of Europe was due to the increase in the number of institutional players. Chainalysis said large institutional cryptocurrency transaction value in CNWE grew from $1.4 billion in July 2020 to $46.3 billion in June 2021.
The DeFi space has grown massively in recent years, and Europeans are some of the most active people in this space. Hence, it is not surprising that the region is now the leading in terms of crypto market share.
