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Europe’s crypto market is worth $1 trillion thanks to the DeFi boom

Updated: Jul 25, 2024
Published: Sep 28, 2021
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The DeFi sector has grown massively over the past year, and Europe is the biggest winner.

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Europe is now the largest crypto continent

The European cryptocurrency market has experienced massive growth over the past year, overtaking Asia to become the leader. A new report by Chainalysis revealed that Europe’s cryptocurrency market is now worth $1 trillion, surpassing every other continent in the world.

In the report, Chainalysis said,

Central, Northern, & Western Europe (CNWE) has the biggest cryptocurrency economy in the world, receiving over $1 trillion worth of cryptocurrency over the last year, which represents 25% of global activity.
Europe was second last year. However, the decline in cryptocurrency activities in Asia and Eastern Europe resulted in Europe overtaking them this year. The ban on cryptocurrency activities in China and the tight regulations in Japan and South Korea resulted in Asia falling behind CNWE this year.

The report cited an increase in institutional involvement in the cryptocurrency space as one of the major drivers of the change. The report said,

Large institutional cryptocurrency transaction value grew from $1.4 billion in July 2020 to $46.3 billion in June 2021, at which point it made up more than half of all CNWE activity.

DeFi boom helped Europe’s crypto market grow

Europe can attribute its cryptocurrency growth over the past year to the rise in decentralized finance (DeFi). Chainalysis pointed out that CNWE’s transaction volume grew significantly across virtually all cryptocurrencies and service types, but especially on DeFi protocols.

The blockchain analysis firm added that data shows that over the last 12 months, the majority of large institutional-sized transfers went to DeFi platforms. DeFi’s popularity has grown tremendously over the past year as more retail and institutional investors participated in the financing DeFi projects.

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