Digital analytics firm Chainalysis reported that the growth of the crypto market in North America has been driven by the growing popularity of decentralized finance.
In its 2021 Cryptocurrency Geography Report, Chainalysis said that the monthly crypto trading volume in North America increased by more than 1,000% from July 2020 to June 2021. The monthly volume peaked at 164 billion in May 2021 before dropping to just over $ 100 billion. in June.
Decentralized finance, or DeFi, was largely responsible for maintaining North America as one of the largest crypto markets in the world, according to the Chainalysis report. DeFi transactions accounted for 37% of the overall transaction volume in North America from July 2020 to June 2021, with residents sending around $ 276 billion in crypto to platforms in the DeFi space.
The Central, Northern and Western European region sent the most crypto overall – $ 389 billion, or about 40% of its overall trading volume during the same period. Chainalysis said the “DeFi whales” were responsible for transforming the region into the world’s largest cryptocurrency economy, with the majority of institutional-sized transfers going to decentralized finance platforms.
However, the report states that DeFi deals in North America have been led by retail investors over the past year, with many trades below $ 10,000. Uniswap was the most popular DeFi platform in North America, with users sending more than $ 100 billion in transaction volume between July 2020 and June 2021.
“At the moment DeFi is aimed at crypto insiders,” said David Gogel, head of growth for dYdX. “These are people who have been in the industry for a while and have enough funds to experiment with new assets.”
Related: Is the cryptocurrency epicenter moving away from East Asia?
In addition, the crypto market in East Asia is in decline, possibly due to the regulatory crackdown on the Chinese crypto industry and mining in the region. Chainalysis reported that China’s P2P trading volume has declined significantly over the past year, placing the country in the 155th position globally from 53rd the previous year. Although East Asia still received $ 591 billion in crypto transactions between July 2020 and June 2021 – a 452% year-over-year growth – the company called the region “the slowest growth” in its to analyse.
“Mining is not the only part of China’s cryptocurrency economy affected by the crackdown,” Chainalysis reported. “The government has taken other steps such as campaigning against cryptocurrency in state-sponsored media, placing official warning messages on cryptocurrency-related apps, and potentially relying on them. social media companies to remove cryptocurrency-related content. “