October 17, 2024
Written by FinTech Alliance
New research published today by blockchain data platform Chainaracy confirms that the UK is the largest crypto economy in Central, Northern and Western Europe (CNWE). Ranked 12th on Chainalysis’ Global Cryptocurrency Adoption Index, up two places from 2023, the UK will generate $217 billion in crypto value on-chain between July 2023 and June 2024. I received it.
Merchant services are thriving and becoming a key aspect of the UK’s growth. CNWE has the second largest commercial services market in the world after Central, South Asia and Oceania (CSAO), led by 58.4% year-on-year growth in the UK. Stablecoins are the most commonly used asset type in these services, consistently accounting for 60-80% of the market share each quarter.
Commenting on the report, Jordan Wayne, UK public policy lead at Chainalysis, said: The country’s progress compared to other European neighbors is noteworthy, given recent regime changes and an overall slowdown in regulatory policy developments. The UK has a significant opportunity to leverage high levels of grassroots adoption to drive growth in this sector. It is therefore important that a Labor government leverages on these drivers of success to establish the UK as a global leader in this field and ensure that blockchain technology and digital assets, as well as other frontier technology initiatives, become the world’s true It is important to ensure that it is recognized and supported as a foundation for National growth”
Cryptocurrency activity is growing across CNWE
Central, Northern and Western Europe (CNWE) as a whole, beyond the UK, is the second-largest crypto economy in the world after North America, with 987.25 billion on-chain transactions between July 2023 and June 2024. It received a value of USD 10,000,000 and accounted for 21.7% of global transactions. volume. Cryptocurrency activity grew in most countries in the CNWE, with an average year-on-year (YoY) growth rate of 44%. After the UK, Germany ($125.3 billion), France ($101.2 billion) and the Netherlands ($83.3 billion) received the highest amount of on-chain value on CNWE between July 2023 and June 2024. I did.
Stablecoins dominate CNWE’s market share
CNWE saw stablecoin trading volume increase 2.5x compared to North America for transfers of less than $1 million. CNWE’s stablecoin value across all transaction sizes accounted for nearly half ($422.3 billion) of total crypto inflows. Although inflows decreased in May and June 2024, the proportion of stablecoin transactions increased, indicating robust usage despite the market decline following the bull market. At CNWE, stablecoins dominated other asset types over the past two years, accounting for an average of 52.36% of the trading share across asset types from July 2022 to June 2024. However, it remains to be seen how the European Union (EU) market will change. The impact of the Crypto Asset Regulation (MiCA) stablecoin regime and this December regulation on crypto asset service providers (CASPs) will have a significant impact on the region.
Commenting on the advantages of stablecoins in CNWE, Matthias Bauerlangertner, Head of European Policy at Chainalysis, said: As MiCA’s stablecoin regulatory regime remains in full force and further legislation will be applied, EBA and ESMA will continue to refine the ambiguous aspects of their regulation, making it unnecessary for the momentum we are seeing in the region. It is important to avoid any negative impact. . Greater clarity is needed to ensure that all stakeholders, including regulators, can continue to effectively navigate the new regulatory environment and foster a prosperous yet equally robust and secure crypto asset market. It will be. ”
In Eastern Europe, financial institutions and DeFI are driving crypto growth
Despite wars and regulatory issues in the region, Eastern Europe is the fourth largest cryptocurrency market in the world, with $499.14 billion on-chain between July 2023 and June 2024. Received value. Centralized exchanges (CEX) received the most cryptocurrencies in the region. Close to $324 billion, DeFi activity has grown significantly over the past year, with crypto assets amounting to $165.46 billion and accounting for one-third of inflows into the region.
This year’s Global Cryptocurrency Adoption Index ranks regional leaders Ukraine and Russia in 6th and 7th place, respectively, with Russia moving up six places from last year’s ranking. Cryptocurrency markets in both countries are thriving despite the ongoing war and the tightening of international sanctions regimes against Russia, with Russia leading Eastern Europe with $182.44 billion in crypto inflows, as shown below I am doing it. Ukraine followed suit, receiving $106.1 billion in cryptocurrencies.
