Cryptocurrency Trends in Central, Northern, & Western Europe
Central, Northern, & Western Europe (CNWE), the second largest cryptocurrency economy globally, received $987.25 billion in value on-chain between July 2023 and June 2024. This accounted for 21.7% of the global transaction volume, with most countries in CNWE experiencing crypto activity growth. The United Kingdom (UK) stands out as the largest cryptocurrency economy in the region, receiving $217 billion in crypto.
Bitcoin Growth in CNWE
Bitcoin (BTC) saw significant growth in CNWE, especially for transactions below $1 million, with a nearly 75% increase. BTC accounted for around one-fifth of CNWE’s total on-chain value received, outpacing other asset types. Stablecoin volume also saw substantial growth, outstripping North America.
Stablecoin Usage in CNWE
Stablecoin value in CNWE totaled almost half of the region’s crypto inflows across all transaction sizes. Stablecoins played a crucial role in facilitating transactions, especially for businesses, with an average monthly inflow of $10-$15 billion. Despite fluctuations, stablecoins remained a dominant asset type in the region.
Stablecoin Purchases with Fiat Currency
The use of stablecoins for purchases with fiat currency was significantly higher than that of BTC in CNWE. The euro (EUR) had a substantial share of stablecoin purchases, showcasing the preference for stablecoins in the region.
Merchant Services and Stablecoin Usage in the UK
The UK led CNWE in merchant services market growth, with stablecoins being the most commonly used asset type. Stablecoins accounted for 60-80% of the market share quarterly, emphasizing their importance in facilitating transactions in the region.
Real-World Asset Tokenization and DeFi Growth
RWA tokenization is gaining traction in CNWE, offering diverse investment opportunities in sectors like real estate and collectibles. CNWE also experienced significant growth in DeFi activity, outperforming other regions in YoY growth, with decentralized exchanges (DEXes) driving most of the growth.
Regulatory Impact and Future Outlook
The EU’s MiCA regulation is set to impact stablecoins and CASPs in CNWE, with compliance teams gearing up for implementation. Experts emphasize the importance of regulatory clarity for mainstream adoption and innovation in the digital assets space, as CNWE continues to evolve its regulatory framework alongside the UK.
Source : www.chainalysis.com