A recent chainalysis report has revealed that Central, Northern, and Western Europe (CNWE) is the world’s biggest crypto economy, accounting for 25 percent of the global crypto activity.
The report shows that CNWE’s transaction volume across all crypto-related services and most especially DeFi protocols grew considerably within the last 1 year. According to the report, the influx of institutional investors accounted for much of the growth; however, retail transactions activity also spiked within the same period.
The region’s crypto-economy boomed exponentially in July 2020 when it saw an increase in big institutional-sized transactions which are transactions mostly above $10 million. At the time, the value of huge institutional crypto transactions stood around $1.4 billion, however, by June 2021, it has surged to $46.3 billion
Chainalysis data revealed that most of the large institutional-sized crypto transfers went to DeFi protocols. This means that transfers to DeFi made up many of the large institutional transactions. The data also shows that these transfers were made in Ethereum and wrapped Ethereum, which are popularly used in DeFi.
Further details about the Defi transactions revealed that decentralized exchanges like Uniswap, Instadapp, and dydx were being frequently used by these investors while Binance and Coinbase were the most used amongst centralized exchanges.
Interestingly, transactions from the United Kingdom dominated the space as its transaction volume was roughly $170 billion —nearly 50 percent of this went to Defi protocols. Other countries in the top 5 include France, Germany, the Netherlands and Switzerland.