With over €870 billion in bitcoin received in the previous year, Europe has become the world’s largest cryptocurrency economy.
According to new research by blockchain analytics firm Chainalysis, countries in Central, Northern, and Western Europe (CNWE) accounted for 25% of all worldwide cryptocurrency activity.
With roughly €145 billion in bitcoin trade volume, the United Kingdom led the CNWE area. France, Germany, the Netherlands, and Spain came in second, third, and fourth, respectively.
In mid-2020, when crypto transaction volumes in Europe began to rise, volumes in East Asia – the previous world cryptocurrency capital by transactions – began to plummet.
Rapid growth Of Europe
According to this research, “whales,” or huge institutional investors that move massive amounts of bitcoin, drove Europe’s rise.
“In July 2020, CNWE’s cryptocurrency economy started to accelerate. We noticed a significant rise in big institutional-sized transactions at this period, defined as transfers of more than $10 million (€8.5 million) in bitcoin “According to a study.
The firm’s data demonstrates the magnitude of such expansion. Large institutional transfers were about €1.2 billion in July 2020. By June 2021, that amount had risen to €39.6 billion, making the whales responsible for more than half of the total crypto transfer volume in the CNWE.
According to the study, Defi, or “decentralized finance,” platforms handled the bulk of big institutional transactions in Europe.
Large investors have embraced Defi platforms because they provide means to stake cryptocurrencies, allowing long-term holders to profit from interest payments by lending their bitcoin to Defi protocols.
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