Cryptocurrency Market in Europe

by baaaawz

The Bitcoin (BTC) and cryptocurrency market in Europe is in excellent form. Indeed, over the course of the last year, it has grown to become the largest cryptocurrency economy in the world, with record-breaking trade volumes.

Cryptocurrency Market in Europe: 25% of All Activity

According to a recent research issued by Chainalysis, Central, Northern, and Western Europe (CNWE) will be the world’s largest crypto economy between July 2020 and July 2021. During the same period, European investors believed that more than $1 trillion in digital assets were exchanged, according to their estimates.

In terms of worldwide digital asset trading, ECNO came in second place, after only East Asia, contributing for around 30% of total global digital asset trading in 2019. The cryptocurrency regulations of China and South Korea, on the other hand, have resulted in a substantial drop in trade volumes since May of this year.

Because of the stringent regulation of digital assets in East Asia, the amount of trading on the ECNO exchange, which accounts for a quarter of all worldwide crypto-transactions, has definitely increased.

Changes in the Typology of Cryptocurrency Investors

Since July 2020, the crypto economy in the Northern Hemisphere has experienced a significant increase in its growth. This upsurge correlates with the alterations that have been observed in the investor type. Indeed, since July 2020, the number of big institutional transactions, defined as deals valued at more than $10 million, has gradually grown.

When it comes to transactions, they accounted for the equivalent of $1.4 billion in July 2020 and for more than half of all transactions with an anticipated value of $46.3 billion in June 2021, according to the latest available data. The proportion of transactions carried out by private investors has, on the other hand, decreased substantially.

These developments not only have ramifications for the cryptocurrency market in Europe, but they also have implications for crypto investments, which are becoming increasingly popular. Indeed, decentralized finance (DeFi) has enticed major institutional investors away from Bitcoin and altcoins by offering them the opportunity to invest in ether (ETH), which is frequently utilized by DeFi protocols instead.

Institutional investors, on the other hand, are still Bitcoin maximalists, and they are the exception to the rule that all other investors prefer DeFi protocols. Indeed, Bitcoin has been the source of more than 40% of the investments made by this group of participants to date.

The Rise of the Cryptocurrency Market in Europe

The position that DeFi has adopted in relation to the NWE crypto ecosystem is another finding of the Chainalysis research, which can be seen here. The services provided by DeFi were regularly rated among the top 5 cryptocurrency platforms getting the most investment throughout the first six months of 2021. Noteworthy are the substantial gains in money received by Uniswap and Instadapp during the same period, which distinguishes them from the others.

Finally, the United Kingdom, France, and Germany are the three nations with the biggest cryptocurrency market in Europe, according to CoinDesk. The United Kingdom is top on the list, with around $170 billion worth of cryptocurrencies exchanged between July 2020 and June 2021 in the country.

In addition, we may witness an increase in decentralized funding in this area. With the exception of Germany and Spain, DeFi protocols were used in more than half of all crypto-interactions, with the exception of Germany and Spain.

In France, the proportion of DeFi is higher than the national average. This is not unexpected given the fact that the concept of saves and passive income is widely accepted in France’s culture.

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