Europe has surpassed China and the United States as the world’s largest market for digital currencies.
According to a poll issued last Tuesday (28), the region of Central, North, and Western Europe (CNWE) had the highest volume of cryptocurrency transactions on the planet, with more than US$ 1 trillion in digital assets traded between July 2020 and June 2021.
The number reflects the rise of all categories of the cryptocurrency industry in the region, with a concentration on decentralised finance projects, and accounts for one-quarter of the global volume (DeFi).
This division is in charge of decentralised loan and brokerage protocols, among others, that are run directly on intelligent contracts and do not require a governing authority.
The United States is second (dark green line), followed by Southeast Asia and Central Asia (yellow), East Asia (pink), and Eastern Europe (blue). Latin America (green) is the third-to-last region, trailing only the Middle East (grey) and Africa (yellow) (orange).
The United Kingdom is Europe’s largest market, accounting for US$ 170 billion in transactions over the study period. Almost half of these (49%) were assigned to DeFi protocols. France, Germany, Holland, and Switzerland are next.
The record volume refers not just to purchase and sale transactions, but also to overall industry investments. According to Chainalysis, Europe has become the primary destination for institutional contributions, which have increased more than 32 times in one year, from US$ 1.4 billion in July 2020 to US$ 46.3 billion in June this year.
According to the survey, the countries studied have a prevalence of 25% to 30% of transactions with stablecoins, which are cryptocurrencies that have parity with fiat currencies, primarily the dollar. Monaco was one of the exceptions, with this sort of asset accounting for 39 percent of all transactions.
Surprisingly, Ethereum (ETH) is the most widely utilised cryptocurrency rather than Bitcoin (BTC) (ETH). ETH and wETH, a tokenized version of the currency, had the greatest transaction volume among all European countries. In Portugal, for example, about 70% of transactions used some kind of Ethereum.
The popularity of decentralised finance has contributed to Ethereum’s supremacy, as it is the primary platform for such projects, despite the intense competition offered by competing solutions such as Binance Smart Chain, Solana (SOL), and Cardano (ADA).