Recent data from blockchain analysis firm Chainalysis reveals that the UK has the largest crypto economy in Central, Northern and Western Europe (CNWE).
The UK rose two places to 12th place on the Chainalysis Global Cryptocurrency Adoption Index, with on-chain crypto value of USD 217 billion from July 2023 to June 2024. At CNWE, merchant services is a growth segment primarily driven by the UK. This sector expanded by 58.4% year-on-year.
The region has the world's second-largest cryptocurrency sales and services market after Central, South Asia and Oceania (CSAO). Stablecoins lead the way as the most frequently used asset type, accounting for 60-80% of the market share each quarter.
Overall, CNWE is the second-largest crypto economy in the world after North America, recording USD 987.25 billion in on-chain crypto transactions between July 2023 and June 2024, which is the largest in the world. This corresponds to 21.7% of the total trading volume. Major contributing countries include the United Kingdom, Germany (US$125.3 billion), France (US$101.2 billion), and the Netherlands (US$83.3 billion). Year-on-year, cryptocurrency activity in the region recorded an average growth of 44%.
Stablecoins also dominate market share in CNWE, with stablecoin inflows for transactions under USD 1 million in the region growing at 2.5 times the rate of North America. From July 2022 to June 2024, stablecoin transactions accounted for an average of 52.36% of all asset types. While crypto inflows declined in May and June 2024, stablecoin usage remained strong.
Regulation and growth in Eastern Europe
Future regulations such as the EU's Cryptoassets Market Regulation (MiCA) for stablecoins are expected to further shape the market. In Eastern Europe, institutional decentralized finance (DeFi) activity has contributed significantly to regional growth, receiving US$499.14 billion in on-chain value in the past year, making it the world's fourth-largest crypto economy. I am.
Centralized exchanges (CEX) accounted for nearly USD 324 billion, while DeFi recorded a notable increase with USD 165.46 billion in crypto inflows. Regional leaders Ukraine and Russia ranked 6th and 7th in the world in cryptocurrency adoption, with Russia moving up 6 places from the previous year.
