Europe's Expanding Crypto Landscape: DeFi and Web3 on the Rise
The digital asset ecosystem in Europe expands as institutions broaden their services to decentralized finance (DeFi) amid market turmoil.
A new market report released by on-chain analytics from Chainalysis shows industry growth in Central, Northern, and Western Europe (CNWE) as well as the United Kingdom’s (UK) dominance in its jurisdiction and the effects of the Markets in Crypto Asset (MiCA) regulation.
According to the study, the CNWE accounts for 17.6% of global cryptocurrency transactions between July and June 2022 and sits as its second largest region in the same metric behind North America.
Recording inflow values over $1 trillion, institutions (traditional and decentralized) increase efforts to tap into the region's DeFi space by creating several web3 initiatives targeted at growing niches.
In CNWE, DeFi numbers make up 54% of total ecosystem value with countries notching growth in lending applications, decentralized exchanges, and related platforms.
“CNWE includes six of the 50 highest grassroots adopters of cryptocurrency around the world: the United Kingdom (14), Spain (22), France (23), Germany (26), Italy (37), and the Netherlands (39). Keep reading to learn more about what drives crypto adoption in these countries.”
A detailed comparison between activities in centralized exchanges shows a slight decline in number owing v to wider market turmoil; however, decentralized exchange inflows surged in seven countries: Albania, Luxembourg, Latvia, Spain, the United Kingdom, France, and Lithuania.
This year policy watchers have projected the UK as a major crypto hub in coming years as can be seen in the deployment of industry-friendly policies and positive regulation to drive investor confidence.
In the last 12 months,
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