The region of central, northern and western Europe leads in the volume of cryptoasset transactions. From July 2020 to June 2021, the region accounted for 25% of all transactions worth over $ 1 trillion.
According to the latest report from the analytical company Chainalysis, the total value of cryptoasset transactions conducted in Europe from July 2020 to June 2021 exceeds $ 1 trillion and accounts for 25% of the global total. The region has seen a surge in transaction volume across all subcategories of the cryptoasset industry, especially Decentralized Finance (DeFi).
Chainalysis analysts include in the concept of cryptoasset transactions all transfers related to trade, investment and business. Europe has also become the epicenter of institutional investment, with transactions in this category growing to $ 46.3 billion in June 2021, up from $ 1.4 billion in July 2020. The UK has become a leader in the region with transactions worth $ 170 billion in a year. Almost half or 49% of this money was sent via DeFi protocols.
“The growth in transaction volume in the UK is driven mainly by growing institutional investment based on large transfers, which account for the majority of transaction volume,” said Henry Updegrave, senior content marketing manager at Chainalysis.
The bullish BTC market, the rise of competing smart contract platforms, and the boom in decentralized finance have all contributed to a massive rally in cryptocurrency markets during the study period. The activity of European users in the cryptocurrency market peaked in May 2021.
Chainalysis data confirms that large institutional investors have become the driving force behind the cryptocurrency markets. Asset managers, family investment firms and other institutional players have invested billions of dollars in BTC and ETH investment products. Institutions have recently been actively buying crypto assets amid declining markets.
In addition to the growth in transaction volume in Europe, Chainalysis researchers have confirmed the growing adoption of cryptocurrencies in emerging markets. The Chainalylsis 2021 Global Cryptocurrency Adoption Index ranked Vietnam, India and Pakistan as the top countries for cryptocurrency adoption based on on-net transaction volume, retail transactions and P2P transactions.
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