Report: Central, Northern and Western Europe has become the world's largest crypto economy in the past year

读者

2021-09-30 11:40 (UTC+8)

This article is about 1225 words, reading the full article takes about 2 minutes

The researchers pointed out that DeFi has greatly promoted the development of the cryptocurrency industry in Britain, France, Germany and other European countries.

AI Summary

Expand

The researchers pointed out that DeFi has greatly promoted the development of the cryptocurrency industry in Britain, France, Germany and other European countries.

This article comes fromDecryptsecondary title

Odaily Translator | Nian Yin Si Tang

Summary:

- According to Chainlaysis, the Central, Northern and Western European region has become the largest crypto-economy in the world over the past year.

- The firm notes that institutional adoption of DeFi has played an important role in this process.Cryptocurrency analysis firm Chainlaysislatest report

The report shows that the Central, Nordic and Western European region (CNWE) has become the largest cryptocurrency economy in the world due to the boom in decentralized finance (DeFi).

According to the report, CNWE received more than $1 trillion worth of cryptocurrency in the past 12 months, equivalent to 25% of the total corresponding global activity.

"CNWE's top spot this year, from its second-ranked position last year, is the result of a huge increase since July 2020, coupled with a relative decline in activity in East Asia," the researchers said.

DeFi is an umbrella term referring to a network of decentralized, non-custodial financial protocols focused on lending, yield farming, crypto derivatives, and other products. DeFi allows ordinary users to participate in a vast financial system without any third-party intermediaries such as banks and other financial institutions.Chainlaysis said,, a trend that is most prominent in CNWE’s crypto space.

image description

Transaction volumes in Central, Northern and Western Europe between April 2019 and June 2021. Image credit: Chainlaysis

“CNWE’s trading volumes grew significantly across nearly all cryptocurrencies and service types, and were particularly pronounced in the DeFi protocol space,” the researchers noted. “While retail activity also increased, the influx of institutional investment implied by large-scale transactions drove most of the growth."

For example, the total value of large institutional-scale transactions (i.e. transfers of funds worth $10 million or more) grew from $1.4 billion in July 2020 to $46.3 billion in June 2021, accounting for more than 50% of all CNWE activity .

The data shows that in the past 12 months, the majority of large institutional-scale transfers have flowed to DeFi platforms. Given this, it should come as no surprise that most large institutional transfers are made in ETH and WETH. WETH is an ERC-20 token equivalent to Ethereum, commonly used in DeFi protocols.

The UK is well ahead of other CNWE countries in terms of value gained. Over the past year, the UK has received around $170 billion in crypto transactions, 49% of which was value sent to DeFi.

image description

Value of cryptocurrencies received by countries in Central, Northern and Western Europe between July 2020 and June 2021. Image source: Chainalysis

Besides the UK, other EU countries such as France, Germany, the Netherlands and Switzerland also made it into the top five.

ETH and WETH became the most popular cryptocurrencies in almost every CNWE country, surpassing even Bitcoin in terms of trading volume. For example, in the United Kingdom, Bitcoin accounts for 27% of the total transaction value of cryptocurrencies, while ETH and WETH account for 40%.