highlights that the UK holds the largest cryptocurrency economy in Central, Northern, and Western Europe (CNWE).
The UK moved up two spots to twelfth in the Chainalysis Global Crypto Adoption Index, recording USD 217 billion in on-chain crypto value from July 2023 to June 2024. In CNWE, merchant services represent a growing segment, driven primarily by the UK, where this sector expanded by 58.4% year-over-year.
This region has the second-largest market for crypto merchant services globally, trailing only Central and Southern Asia and Oceania (CSAO). Stablecoins lead as the most frequently used asset type, making up 60-80% of the market share each quarter.
Overall, CNWE is the second-largest cryptocurrency economy worldwide, following North America, and it recorded USD 987.25 billion in on-chain crypto transactions between July 2023 and June 2024, equating to 21.7% of the global volume. Key contributors include the UK, Germany (USD 125.3 billion), France (USD 101.2 billion), and the Netherlands (USD 83.3 billion). Year-over-year, crypto activity in the region saw a growth average of 44%.
Stablecoins also dominate CNWE’s market share, with the region’s stablecoin inflows for transactions under USD 1 million growing at a rate 2.5 times higher than in North America. Between July 2022 and June 2024, stablecoin transactions averaged 52.36% of the total across asset types. While May and June 2024 saw a decline in crypto inflows, stablecoin usage remained strong.
Regulations and Eastern Europe growth
Upcoming regulations, such as the EU’s Markets in Crypto-Assets Regulation (MiCA) for stablecoins, are expected to further shape the market. In Eastern Europe, institutional and decentralized finance (DeFi) activity has significantly contributed to regional growth, making it the fourth-largest crypto economy globally, with USD 499.14 billion in on-chain value received over the past year.
Centralized exchanges (CEXes) accounted for nearly USD 324 billion, while DeFi saw notable increases with USD 165.46 billion in crypto inflows. Regional leaders Ukraine and Russia ranked sixth and seventh globally in crypto adoption, with Russia advancing six places from the previous year.