Europe has been crowned the world’s largest crypto market with DeFi adoption driving investments according to a new report.
European countries received over $1tn (£734.4bn) worth of cryptocurrency over the last year, which represents 25 per cent of global activity. Surging investment was driven by interest in DeFi, with the UK and Germany leading adoption, a Chainalysis report has revealed.
Having ranked second last year, Europe’s new position in the top spot is the result of tremendous growth starting in July 2020, combined with a relative decline in activity in Eastern Asia, as China’s governing party turned the screw on crypto ownership.
In Europe, transaction volumes peaked in May when the market spiked during a sharp price correction which shaved 50 per cent from the price of Bitcoin.
Analysis of 34 European countries showed that in every country investment in Ether and wrapped Ether, tokens used to access the DeFi ecosystem, attracted more capital than any other market segment.
It comes as data released today showed that more than six in ten institutional investors and wealth managers from the US, UK, France, Germany, and the UAE that currently don’t have any exposure to cryptocurrencies and digital assets, expect to invest for the first time within the next year.
Large institutional cryptocurrency transaction value helped to drive the growth of the European market growing from $1.4bn in July 2020 to $46.3bn in June 2021, at which point it made up more than half of all activity.
DeFi accounted for the majority of capital invested by large institutional, retail and professional investors in Europe.