This is How Defi Made Europe the World’s Biggest Crypto Economy
A recent Chainalysis report shows that Central, Western and Northern Europe (CWNE) together received $1 trillion in crypto transactions over the past year. A whopping 25% of total crypto transactions last year saw their destination in Europe making it the world’s biggest crypto economy.
The Chainalysis report noted that CWNE’s crypto transactions volume grew significantly for most of the crypto assets especially Defi and it played a key role in helping it top the crypto economy. Although retail activity also spiked, institutional investment drove the majority of the transactions, of which 50% went towards Defi.
Institutional Investors Soaring Demand For Defi Put Europe on top
Chainalysis analysis showed that crypto transactions to the CWNE region started to grow from July 2020 but exploded in a year’s time. Institutional investors drove the majority of the transactions as their investment grew from $1.4 billion in July 2020 to $46.3 billion in June 2021. These institutional transactions made for half of the total transactions in the region.
Another interesting factor revealed that the majority of institutional transactions over the past 12-months were made towards defi platforms. Data showed that the majority of institutional funds were converted to Ethereum and wrapped Ethereum (wETH), an ERC-20 token used on Defi. The following chart shows the movement of funds into different defi protocols.
“DeFi protocols represent three to four of the top five services in most months, with Uniswap, Instadapp, and dydx making frequent appearances. Binance and Coinbase, meanwhile, remain the most popular centralized exchanges. “
Defi’s rising popularity is no secret which has grown into a multi-billion dollar industry within two years time. The popularity of the Defi market is quite visible from the institutional trends in Europe, and a similar trend can be seen in the US as well. The total value locked in defi protocols is currently at $173 billion and with the recent China crypto ban, many expect the number to grow further as Chinese traders flock to Defi after a ban on centralized exchanges.
- Grayscale Staking Ethereum ETF Debuts By Locking 32,000 ETH But Inflows Disappoint
- Pi Network Loses $18B Value in Six Months as Expert Warn of “Rug Pull” Risk
- Fed’s Jeffrey Schmid Signals Opposition to Further Rate Cuts With Inflation ‘Too High’
- IBIT Bitcoin ETF Becomes BlackRock’s Most Profitable Fund, Nears $100B Milestone
- Bitcoin Tops $126,000 as Market Prices In Three-Week U.S. Government Shutdown
- Solana Price Eyes 56% Rebound Amid Solana Company’s Massive $530M SOL Acquisition
- Ethereum’s Price Bullish Cycle Resumes as Grayscale Launches Spot Staking ETPs – Is $7,331 Next?
- Pi Network Price Risky Pattern Points to Crash as 14M Coins Leave OKX
- Bitcoin Price Prediction as Exchange Reserves Hit 6-Year Low—Is $150K Within Reach?
- Dogecoin Price Rebounds 15% From Buy Zone as Whales Add 30M DOGE – Can Bulls Push Beyond $0.30?
- FLOKI Price Prediction as ETP Listing Drives Adoption—Is a 160% Rally Ahead?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
