The UK leads the European cryptocurrency economy with $217 billion on-chain value

Recent data from a blockchain analysis company Sequential analysis
It highlights that the UK has the largest cryptocurrency economy in Central, Northern and Western Europe (CNWE).

The UK moved up two places to 12th place in the Chainalysis Global Cryptocurrency Adoption Index, recording US$217 billion in on-chain cryptocurrency value from July 2023 to June 2024. At CNWE, merchant services represent a growing segment, primarily driven by the UK, where This sector expanded by 58.4% year-on-year.

This region has the second largest market for cryptocurrency trading services in the world, after Central and South Asia and Oceania (CSAO). Stablecoins lead as the most widely used asset type, making up 60-80% of the market share each quarter.

Overall, CNWE is the second largest cryptocurrency economy worldwide, after North America, and recorded US$987.25 billion in cross-chain cryptocurrency transactions between July 2023 and June 2024, equivalent to 21.7% of global volume. Major contributors include the United Kingdom, Germany ($125.3 billion), France ($101.2 billion) and the Netherlands ($83.3 billion). On an annual basis, cryptocurrency activity in the region witnessed an average growth of 44%.

CNWE’s market share is also dominated by stablecoins, with stablecoin flows in the region for transactions under $1 million USD growing at a rate 2.5 times higher than in North America. Between July 2022 and June 2024, stablecoin transactions averaged 52.36% of the total across asset types. While May and June 2024 saw a decline in cryptocurrency flows, stablecoin usage remained strong.

Regulations and growth in Eastern Europe

Upcoming regulations, such as the EU Markets for Cryptoassets (MiCA) regulation of stablecoins, are expected to further shape the market. In Eastern Europe, institutional and decentralized finance (DeFi) activity has contributed significantly to regional growth, making it the fourth largest crypto economy globally, with US$499.14 billion in on-chain value received over the past year.

Centralized exchanges (CEXes) accounted for nearly $324 billion, while DeFi saw notable increases with $165.46 billion in cryptocurrency flows. Regional leaders Ukraine and Russia ranked sixth and seventh globally in cryptocurrency adoption, with Russia moving up six places from the previous year.