DeFi has grown to be a key force in the European crypto economy. The percentage of transactions handled by large institutions has risen considerably as well. The European Union has become the first region to transact in cryptocurrency in surpassing one trillion dollars. Chainalysis, a blockchain analytics company, found that the CNWE crypto block was the most active on the globe. Over the last year, it has received digital assets valued at over $1 trillion.
For this report, Chainalysis defined crypto transactions as anything that involves trade, investment, or commercial interactions. In aggregate, as compared to the previous year’s figures, transaction volumes in Europe increased to $46.3 billion in June 2021, from $1.4 billion in July 2020. By far, the United Kingdom has been most active, doing $170 billion in trade in the last year alone. In addition, DeFi protocols account for 49% of the total value.
Growth in the United Kingdom is mostly driven by increasing institutional investment, which is based on big transfers that account for most of the country’s transaction volume. Europe has also become a hub for institutional investing, with transaction values in this sector expected to reach $46.3 billion in June 2021, up from $1.4 billion in July 2020.