The technical ecosystem for digital assets in Europe is witnessing clear growth as institutions expand their services to include decentralized finance (DeFi) in light of the turmoil hanging over the market.

A new state of the market report issued by blockchain analytics company Chainalysis shows that the crypto industry has recorded growth in the Central, Northern and Western Europe (CNWE) region, and the report also indicates the United Kingdom’s dominance of the market in its region, in addition to the impact of the Digital Assets Markets Act (MiCA). In the European Union on industry.

According to the findings of this study, digital asset transactions in Central, Northern, and Western European countries represented 17.6% of global crypto transactions between July 2022 and June 2023, making it the second largest region in the volume of crypto transactions after North America according to the same measure.

Financial institutions - both traditional and decentralized - are striving to engage in the decentralized finance (DeFi) sector in the aforementioned European region by establishing many projects based on the third web (web3) that are directed to investing in specific areas with clear growth, and this is clearly demonstrated by registering... Financial flows exceeding one trillion dollars to invest in this sector, which represents 54% of the total size of the technical system for digital assets, and countries in that region have also recorded growth in the use of lending applications, decentralized trading platforms, and other decentralized finance platforms.

The Central, Northern and Western Europe region includes six countries that are ranked among the fifty countries that use digital currencies the most in the world, namely: the United Kingdom, ranked 14th, Spain (22nd), France (23rd), Germany (26th), Italy (37th). ), and the Netherlands (39). You can continue reading to learn more about the reasons behind the adoption of digital currencies in these countries.”