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Report: Powered by DeFi, North America’s crypto volume up 1,000% year-on-year

Digital analytics firm Chainalysis reported that the growth in the crypto market in North America is driven by the rise in popularity of decentralized finance.

In its 2021 Geography of Cryptocurrency Report, Chainalysis stated that monthly crypto transaction volume in North America increased by over 1,000% from July 2020 to June 2021. Monthly volume reached a peak of $164 billion in May 2021 before dropping by more than $100 billion. in June.

According to a Chainalysis report, decentralized finance, or DeFi, was largely responsible for North America maintaining its position as one of the largest crypto markets worldwide. From July 2020 to June 2021, DeFi transactions represented 37% of North America’s total transaction volume, with residents in the DeFi space sending approximately $276 billion in crypto to the platform.

The Central, Northern and Western Europe region sent the most in crypto – $389 billion, about 40% of its total transaction volume during the same time period. Chainalysis said that “DeFi whales” were responsible for turning the region into the largest cryptocurrency economy in the world, with the majority of institutional-sized transfers going to platforms in decentralized finance.

However, the report noted that North America’s DeFi transactions were led by retail investors last year, with many trading below $10,000. Uniswap was the most popular DeFi platform in North America, with users sending over $100 billion in transaction volume between July 2020 and June 2021.

“Right now, DeFi is targeted towards crypto insiders,” said David Gogel, head of development at dYdX. “These are people who have been in the industry for a while and have enough money to experiment with new assets.”

related: Is the cryptocurrency epicenter moving away from East Asia?

In addition, the crypto market in East Asia has declined, possibly driven by regulatory action on China’s crypto industry and mining in the region. Chainalysis reported that P2P trading volume in China has declined significantly over the past year, placing the country at 155th worldwide, up from 53rd a year ago. Although East Asia still received $591 billion in crypto transactions between July 2020 and June 2021 – an increase of 452% year-on-year – the firm dubbed the region the “slowest-growing” in its analysis .

“Mining is not the only part of China’s crypto economy affected by this action,” Chainalysis reported. “The government has taken other actions such as campaigning against cryptocurrency in state-sponsored media, placing official warning messages on cryptocurrency-related apps, and potentially leaning on social media companies to suppress cryptocurrency-related content.”

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