Digital analytics firm Chainalysis has reported that growth in the North American crypto market is being driven by the increasing popularity of decentralized finance.
In its Crypto Geography Report 2021, Chainalysis said that monthly crypto trading volume across North America increased more than 1,000% from July 2020 to June 2021. It peaked at $ 164 billion in May 2021, before falling to just over $ 100 billion. in June.
As Chainalysis reports, Decentralized Finance, or DeFi, is largely responsible for helping North America maintain its position as one of the largest cryptocurrency markets in the world. DeFi transactions accounted for 37% of total North American transaction volume from July 2020 to June 2021, with residents transferring approximately $ 276 billion in crypto to platforms in the DeFi space.
The Central, Northern, and Western Europe region sends the most cryptocurrencies overall – $ 389 billion, about 40% of their total trading volume over the same period. Chainalysis says the “DeFi Whale” is responsible for making the region the largest crypto economy in the world, with the majority of institutional-scale remittances going to decentralized financial platforms.
However, the report says North American DeFi deals were led by retail investors last year, with many transactions under $ 10,000. Uniswap is the most popular DeFi platform in North America, with users sending over $ 100 billion in trading volume between July 2020 and June 2021.
“DeFi is currently aimed at crypto insiders,” said David Gogel, dYdX growth director. “These are people who have been in the industry for a long time and have enough money to test new assets.”
Related: Is the crypto epicenter moving away from East Asia?
In addition, the East Asia crypto market is declining, likely fueled by regulatory crackdowns on China’s crypto industry and mining activities in the region. Chainalysis reports that the P2P trading volume in China fell significantly in the past year, ranking the country in 155th place worldwide from 53rd place in the previous year. While East Asia received $ 591 billion in crypto transactions from July 2020 to June 2021 – a year-over-year growth of 452% – the company described the region as the “slowest growth” in its analysis.
Chainalysis reports, “Mining is not the only part of China’s crypto economy that has been hit by the raid. “The government has taken other measures, such as campaigning against cryptocurrencies in government-sponsored media, issuing official warnings about crypto-related apps, and possibly relying on social media companies to block crypto-related content.”