Which regions are driving the crypto economy and rise in DeFi?
Amidst regulatory tension stemming from China’s crypto bans, most of Europe, excluding the estern regions, has risen to make up 25% of the global crypto economy. The report from blockchain analysis firm Chainalysis details how most of Europe’s crypto activity constitutes US$1 trillion in the past year.
The article from Yahoo! Finance highlights key trends in crypto activity among global regions:
- North America and parts of Europe grew faster than East Asia, even though crypto activity has positively grown in the East Asian region
- North America captures 20% of global crypto trading
- Parts of Europe have outpaced North America, with Europe’s growth “linked to a wave of institutional investors seeking exposure to the crypto space, especially in DeFi protocols.”
The article points out how “the other major reason why this part of Europe has seen so much growth in crypto volume is that it serves as the largest trading partner or counter-party for other regions across the world. That makes it the key hub for crypto assets flowing around the world.”
Increasing trading volume and interest in DeFi, especially among European countries, is no surprise as DeFi apps continue to offer new yield generation opportunities. Rising interest in yield farming, liquidity mining and DeFi staking returns will increase demand for user friendly DeFi apps as more institutional and retail investors join the space.
3Key Technologies is here to support the next wave of DeFi adoption by offering scalable 1-click solutions to simplify DeFi investments. Through 3Key’s LYRA (Leverage Yield Risk Analytics), the proprietary AI system accesses public data to help manage risks involved in yield farming. It makes DeFi simpler and highly efficient for both retail and enterprise users to generate optimized returns.
