According to a new analysis from blockchain analytics firm Chainalysis, central, northern, and western Europe, has emerged as the world’s most active cryptocurrency block with DeFi being a major catalyst for the growth.
Between July 2020 and June 2021, the CNWE region accounted for 25% of global crypto activity, according to the research, which was issued Tuesday.
Across all crypto sub-categories, especially decentralized finance, or DeFi, transaction volume increased dramatically in the region.
Crypto transactions, according to Chainalysis, include anything involving trade, investments, and commercial activities.
Institutional investment has also become a hotbed in Europe, with transaction values in this category increasing to $46.3 billion in June 2021, up from $1.4 billion in July 2020.
Surprisingly, the United Kingdom has the region’s single largest crypto economy, with $170 billion in transactions. DeFi methods were used to send nearly half of the amount of 49%.
“Growing institutional investment, based on large-sized transfers driving most of its transaction volume, is driving the U.K.’s growth,” Chainalysis senior content marketing manager Henry Updegrave told Cointelegraph.
Crypto’s enormous gain was fueled by a secular bull market for Bitcoin (BTC), the growth of competing smart contract platforms, and the arrival of decentralized finance during the study period.
It’s no surprise that CNWE’s crypto market activity peaked in May 2021, right in the middle of the bull market, one month after Bitcoin topped $64,000.
The data from Chainalysis adds to a growing body of evidence that huge institutional investors have become a driving force in the crypto space.
Grayscale, CoinShares, 21Shares, and other Bitcoin and Ether (ETH) investment products have attracted billions of dollars from wealth managers, family offices, and other institutional investors.
Beyond Europe’s advanced economies, Chainalysis research has shown that crypto is gaining traction in emerging regions.
Based on on-chain value received, retail transactions, and peer-to-peer exchange trade volume, the Chainalylsis 2021 Global Crypto Adoption Index named Vietnam, India, and Pakistan as the leading countries for adoption.