Central, Northern, and Western Europe (CNWE) has solidified its position as the second-largest crypto economy in the world, accounting for 22% of the global transaction volume from July 2023 to June 2024. According to blockchain research firm Chainalysis, the region received $987.25 billion in on-chain value, marking a 44% year-over-year growth.

The UK’s Dominance in Crypto Transactions

The United Kingdom continues to spearhead Europe’s crypto boom, contributing $217 billion to CNWE’s total value, ranking 12th globally in the crypto adoption index. Chainalysis reported that Bitcoin saw a significant surge in smaller transactions, growing nearly 75% for values below $1 million.

Bitcoin’s Growth Surges, but Stablecoins Dominate

Countries in CNWE by crypto value received | Source: Chainalysis

Despite Bitcoin‘s impressive performance, stablecoins have gained more traction, especially in smaller transactions. Stablecoins accounted for $422.3 billion—nearly half of CNWE’s total crypto inflows—while Bitcoin contributed $212.3 billion. In the UK, stablecoins make up 60-80% of the merchant services market, reflecting their growing role in day-to-day transactions.

Crypto Stability Sought in Inflation-Hit Economies

The rising demand for stablecoins is not just a European trend. Inflation-affected regions like Argentina are increasingly relying on stablecoins for financial stability, as these digital currencies provide a hedge against volatile local currencies. This shift further cements the role of crypto in today’s global economy.

Europe’s expanding crypto landscape continues to highlight the region’s growing influence in global financial markets, driven by both institutional and individual investors.