In the latest data released by Chainalysis, it showed that Central, Northern, and Western Europe — also known as “CNWE” — are now the world’s largest crypto economies.
Chainalysis said that over the last year, the European region has received more than $1 trillion worth of cryptocurrencies, which represents 25% of the global crypto activity.
CNWE ranked only second last year, but because of its continuous crypto growth, it didn’t take long before it gained the recognition of being the top crypto economy in the world.
The data also revealed that institutional investments represent the majority of the transactions and not the region’s crypto retail activity.
Crypto transaction’s rise
The CNEW’s crypto transactions have risen significantly, but one notable area where crypto growth was more evident is in the DeFi protocols.
Chainalysis said that this growth was largely a result of the inflow of institutional investment. It said that from July 2020, there was a significant increase in fund transfers amounting to $10 million worth of cryptocurrencies.
“The U.K.’s growth is driven mostly by growing institutional investment, based on the large-sized transfers driving most of its transaction volume,” Henry Updegrave, Chainalysis’ senior content marketing manager said.
The rise of DeFi protocols
Chainalsysis said that over the last 12 months, the majority of large institutional-sized transfers went to DeFi platforms.
It added that a large percentage of these fund transfers were made in Ethereum and wrapped Ethereum (wETH), an ERC-20 token that has the equivalent value of Ethereum commonly used in DeFi protocols.
The Decentralized Finance industry has grown so fast that it is now a multi-billion industry. Analysts agree that even with DeFi’s current size, this industry is just starting to grow and would expand even further in the future as the demand for this kind of service keeps on increasing.
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