- The UK is the single largest crypto economy in the region with US $170 billion worth of transactions
- The UK’s growth is driven mostly by growing institutional investment, based on the large-sized transfers driving most of its transaction volumes.
- According to the Chainanalysis report, the growing adoption is largely driven by interest in DeFi and growing institutional investment.
The UK’s institutional interest is inspiring other countries in Europe in terms of cryptocurrency adoption. In fact, institutional investors have been warming up to cryptocurrencies for a while now in the UK with many players actively seeking their entry into the London’s financial market. With the growing interest in cryptocurrencies, Britons are quite happy to deal in cryptocurrencies and transact more in cryptocurrencies.
According to a Chainanalysis report released on Tuesday, the UK is one of the major driving forces in the entire region. According to the report, in the past one year, the region of central, northern, and western Europe, or CNWE has been most active hub of cryptocurrency activities.
The cryptocurrency economy started accelerating in July 2020 and one has witnessed a huge increase in large institutional-sized transactions of worth US $10 million in cryptocurrencies. In fact, according to the Financial Conduct Authority, more than 2.3 million UK citizens own cryptocurrencies than in 2020 at present, showcasing the growing interest in the digital currencies.
Today, in the UK more and more start-ups are being funded through cryptocurrencies and many retail outlets accept cryptocurrencies as a mode of payment. In fact, this growing adoption is largely driven by interest in DeFi and growing institutional investment that are largely based on the transaction volumes.
Europe is the hotbed for institutional investing, with transactions values soaring up to US $46.3 billion in June 2021 from US $1.4 billion in July 2020. The UK is leading the charge as the single largest crypto economy at US $170 billion worth of transactions.
Why UK is such a hotbed
The crypto services have been booming in the country. With leading cryptocurrency exchanges making crypto trading easier and seamless for British citizens. Besides, a favourable crypto bull market for Bitcoin and growth of competing smart contract platforms and DeFi have all contributed to the massive crypto adoption.
Firms such as PayPal, Revoult, Robinhood not only have multiple tokens on their platform, but also ensure some of the services also offer rewards to the customers, thereby increasing the chances of adoption.
It is not surprising to see UK as a leader as many institutional transfers in the country were made in Ethereum and wrapped Ethereum (wETH), an ERC-20 token which are commonly used in DeFi protocols.
The Chainanlysis report is a good indicator of the environment and the crypto future to come in the UK. The DeFi explosion and the growing adoption has helped the country to expand its horizon and stamp its authority as one of the global leaders of crypto adoption.