Cryptocurrencies Market in Europe

Europe: The World’s Largest Crypto Market?

In 2021, a study by Chainalysis revealed that the largest crypto market in the world from July 2020 to June 2021 was Europe. In this region, there was a surge in transaction volumes due to investment in Decentralised Finance (DeFi). Ethereum and wrapped Ethereum (wETH) were used for most of the transactions. It was found that more than a trillion US dollars of cryptocurrency were received in Central, Northern, and Western Europe (CNWE).

However, in a recent study, it was found that Europe is performing below the global average in terms of the adoption of cryptocurrency. The research, in which 29,293 adults were surveyed in 20 countries, was titled “2022 Global State of Crypto” and was done by Gemini. It was discovered that the share of Europeans that have taken to cryptocurrencies was about 17%, which is below the global average of around 23%. The European countries included in the survey were the United Kingdom, Norway, Ireland, Germany, France, and Denmark. Ireland, with 58%, had the largest number of customers who were curious about crypto and were interested in learning more or were likely to acquire Bitcoin or other cryptocurrencies in the next 12 months.

DeFi Platforms Dominated Large Institutional-sized Transactions

In Chainalysis’ 2021 research, among the top five services in most months, three to four were DeFi (decentralised finance) platforms. Uniswap, dydx, and Instadapp were the most frequently used decentralised crypto trading platforms, while the most popular centralised exchanges were Binance and Coinbase.

According to the report, beginning in July 2020, the number of large institutional-sized transactions (that is, more than $10 million or €8.5 million in bitcoin) increased. The value of major institutional-sized transactions went up from $1.4 billion in July 2020 to $46.3 billion (€39.6 billion) in June 2021. That was a dramatic increase!

Why the Rapid Growth?

The rapid growth of the cryptocurrency market in Europe was significantly caused by the activities of large institutional investors, who are also known as “whales.” These investors moved large sums of crypto in the CNWE. Most of the transactions were done through DeFi platforms. Large crypto investors like decentralised finance platforms because they allow them to stake cryptocurrencies. In that way, long-term cryptocurrency holders make a profit from interest payments when they lend their bitcoin and other cryptocurrencies to DeFi protocols.

Crypto Buyers Audience

In the crypto market, most buyers of cryptocurrencies are young people, particularly Gen Z and Millennials, who respectively represented 33% and 35% of the participants in a recent survey by 451 Research. The study revealed that most consumers see cryptocurrency as more of an asset than a method of payment for now. Most of them have kept their digital coins within the exchanges where they bought them. They mostly stored them on Binance and Coinbase.

The EU’s Crypto Regulation Framework

It was back in September 2020 that the European Commission launched its Markets in Crypto Assets Regulation (MiCAR) proposal, which was developed in 2018. This legal framework aims to boost the crypto-asset markets in the EU through a clear definition of how cryptocurrencies can be regulated. It will also support innovation, sustainable crypto-assets mining, and fair competition. Besides, it will prevent money laundering, and anti-terrorist financing, as well as protect consumers and investors.

On 14 March 2022, the European Parliament’s Economy and Monetary Affairs Committee (ECON) took a promising step by adopting it. Accordingly, it is expected that some of the provisions in MiCAR, such as those that have to do with the use of stablecoins, will come into effect at the beginning of 2024. By 2025, it is hoped that all the provisions of this regulatory framework will have been fully implemented.

Top Services that Support Cryptocurrency

In Europe, the best e-wallets and payment systems that support crypto trading and operations are the following:

Personal Accounts

Ibandirect

Ibandirect offers a dedicated IBAN account, instant transfers, a crypto wallet, plastic and virtual prepaid cards, and unlimited money transfers to other users.

Paxful

You can buy Bitcoin at very cheap rates on Paxful. Its wallet can be used to send and receive crypto.

OWNR Wallet

You will get a prepaid Visa card when you create an account with OWNR Wallet. Its customers can easily use Bitcoin, Ether, and other cryptocurrencies to recharge the card online.

Binance

Binance is the platform where you can buy, trade, and hold more than 600 cryptocurrencies. It is one of the largest cryptocurrency exchanges in the world.

eToro

eToro is a secure and regulated platform for trading in cryptocurrencies. You can explore Bitcoin, Ether, Ripple, Litecoin, and many other cryptocurrencies on eToro.

Wirex

Wirex offers a multicurrency card, zero exchange fees, point-of-sale conversions, and up to 2% rewards on all your expenses.

Kraken

You can buy, sell, hold, and trade Bitcoin, Ether, and other cryptocurrencies on Kraken.

Nexo

Nexo is a simple mobile and desktop platform that offers high-yield interest rates. It is ideal for people new to crypto and experienced investors.

 

Business/Merchant Accounts

Stripe

Stipe helps crypto businesses to access global financial infrastructure. It offers payment services and a wide range of other business solutions.

Intergiro

Intergiro makes it possible for people to spend cryptocurrencies with ease. You can add a fiat wallet to your crypto wallets, as well as attach a Visa debit card.

Connectum

Connectum can help your business with multi-currency payment processing, card-to-card payments, and cryptocurrency support.

TRASTRA

You can use the TRASTRA card to exchange crypto for euros, receive your salary in cryptocurrencies, and make cheap online and in-person purchases with its crypto debit card.

Bankera

Bankera allows you to manage traditional finance and cryptocurrencies under one platform. It accepts deposits and withdrawals from crypto exchange platforms.

Revolut

With Revolut, you can invest in Bitcoin, Ethereum and other digital coins with more than 30 currencies, starting with $1.

 

Crypto Cards

To get crypto cards with which you can directly spend cryptocurrencies, the following providers are our top picks for you:

Crypterium

BlackCatCard

Zengo

Mercuryo

Sticpay

Conclusion

Whether as financial assets or a means of payment, cryptocurrencies allow investors to diversify their portfolios and make gains from their investments. Europe has an impressive market for cryptocurrency, but the governments of the countries in this region need to do more to support individuals and businesses to benefit from this financial asset.