In this article, we’re going to take a look at Central, Northern & Western Europe’s analysis from the Chainalysis Global Crypto Adoption Report.
Chainalysis one of the premier blockchain data analysis platforms. They provide data and security services to various institutions across the globe. Additionally, Chainalysis’ software has been used to solve various high-profile criminal cases internationally.
The Chainalysis 2021 Crypto Adoption Index and report is in its second year. This annual report measures crypto adoption worldwide, on a grassroots level. The report uses a variety of methods to obtain weighted statistics worldwide.
With a measured growth of 880% this year, Cryptocurrency usage is exploding in emerging markets. Let’s take a look at one of the widest range of countries: Central, Northern, and Western Europe.
The World’s Biggest Cryptocurrency Economy
This region, otherwise known as CNWE, represented 25% of the total trading activity worldwide last year. This represents over $1 trillion in crypto transactions from this region according to the report. The CNWE region saw a surge through the Defi summer of 2020, taking over the top spot worldwide.
First, Chainalysis describes CNWE as a unique “international hub in the world cryptocurrency economy”. Every region analyzed in the report had CNWE as the top trading partner by transaction value. Their number one partner?
North America with 34% of the total value received in NA coming from CNWE. Where is this volume going and coming from in this region? Institutions are leading the way in this region, further cementing it as the international Crypto Hub.
CNWE Institutional Crypto Giants
Secondly, a transaction over $10 million worth of crypto is considered an “Institutional Transaction”. In CNWE transactions of this magnitude and higher grew exponentially. Large institutional transactions (>$10M) grew from $1.4 Billion to $46.3 Billion from just July 2020 to June 2021.
Where is this money going? Who is handling this volume? DeFi services that you know and use every day, as well as some centralized exchanges. Chainalysis lists:
- UniSwap
- Instadapp
- dydx
- Binance
- Coinbase
As some of the leaders in this institutional volume. Keep an eye on tokens from these platforms. If this volume continues to rise, token values will naturally follow.
Which Countries are Leading the Way?
Finally, the region of CNWE encompasses a large range of countries and landmasses worldwide. When we start to break this region down into individual countries, we can see where the crypto volume is flowing.
The UK, France and Germany lead the way in combined volume, with the UK leading both Centralized and DeFi categories. The largest whales in these countries are diving headfirst into DeFi, and we can see that increase since June 2020. Additionally, stablecoin activity accounts for an average of 25-30% of volume across the countries. The rest is spread across:
- BTC
- ETH/WETH
- Altcoins
There’s no doubt crypto adoption worldwide is going to be led by CNWE over the next year plus. This is the region that should be at the top of your list in terms of the ones to be watching.
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