Blockchain data platform Chainalysis says that a surge of institutional investment in the decentralized finance (DeFi) space has created the world’s largest cryptocurrency economy.
In a new report, the firm highlights the rise of the digital economy in Central, Northern, and Western Europe (CNWE), citing crypto whales pouring funds into DeFi starting in July of last year.
“CNWE’s transaction volume grew significantly across virtually all cryptocurrencies and service types, but especially on DeFi protocols. An influx of institutional investment, signaled by large transactions, drove most of the growth, though retail activity also increased.
Large institutional cryptocurrency transaction value grew from $1.4 billion in July 2020 to $46.3 billion in June 2021, at which point it made up more than half of all CNWE activity.”
Chainalysis highlights that the lion’s share of all institutional-sized crypto transfers over the last year ended up going to DeFi platforms.
“The data shows that over the last 12 months, the majority