The United Kingdom has solidified its position as a cryptocurrency powerhouse within Central, Northern, and Western Europe (CNWE), according to a recent Chainalysis report. The UK has emerged as a leading force in the region, with a staggering $252.1 billion in raw transaction volume over the past year, ranking it third globally in this category, trailing only the United States and India.
A closer examination of the data underscores the significant role of decentralized finance (DeFi) in driving crypto adoption in CNWE, especially in the UK. DeFi services account for the majority of cryptocurrency value received in the region, comprising 54.8% of the total.
The report’s definition of DeFi includes non-fungible token (NFT) trading, and activity on NFT platforms and decentralized exchanges (DEXes) has been instrumental in propelling the UK’s crypto activity. Opensea and Sorare emerged as the two most utilized DeFi service types in the UK, collectively amassing nearly 20 million visits between July 2022 and June 2023. Uniswap followed closely as the third most visited service, with almost 3 million web traffic visits.
Kim Grauer, Director of Research at Chainalysis, highlighted, “This indicates that DEX trading and NFT swapping is driving a significant amount of the UK DeFi activity over the past year.”
In addition to its prominence within CNWE, Europe as a whole witnessed $1 trillion in on-chain value between July 2022 and June 2023, establishing itself as the second-largest crypto economy globally, behind North America. The region accounted for 17.6% of the global transaction volume during this period.
Moreover, CNWE is home to six of the world’s top 50 largest crypto adopters, with the UK claiming the 14th spot in Chainalysis’ 2023 Global Crypto Adoption Index. This index focuses on countries where everyday individuals are embracing crypto the most, rather than solely measuring the highest raw transaction volumes.
The surge in crypto adoption in the UK can be attributed to customers seeking alternatives to underperforming savings and investments. Individuals are diversifying their portfolios and exploring high-return options, including tokens and NFTs. Additionally, there is a continued interest in Bitcoin and Ethereum, especially with the anticipated 2024 halving event, alongside substantial investments in assets like XRP, Cardano, and Solana, as noted by Jamie McNaught, the founder and CEO of UK-based crypto exchange Solidi.
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