Chainalysis said that last year’s DeFi transactions in North America were dominated by retail investors, and many transactions were below $10,000.
Digital analysis company Chainalysis reports that the growth of the North American cryptocurrency market is driven by the popularity of decentralized finance.
In its 2021 Cryptocurrency Geography Report, Chainalysis pointed out that from July 2020 to June 2021, the monthly cryptocurrency transaction volume across North America has increased by more than 1,000%. The monthly transaction volume reached a peak of US$164 billion in May 2021, and then fell to just over US$100 billion in June.
According to the report, decentralized finance, or DeFi, is the main reason North America continues to maintain its status as one of the world’s largest cryptocurrency markets. From July 2020 to June 2021, DeFi transactions accounted for 37% of North America’s overall transaction volume, and residents sent approximately $276 billion in cryptocurrency to platforms in the DeFi field.
Central Europe, Northern Europe, and Western Europe sent the most cryptocurrencies as a whole-389 billion U.S. dollars, accounting for about 40% of their overall transaction volume during the same period. Chainalysis said that the “DeFi whale” has turned the region into the world’s largest cryptocurrency economy, and most institutional-scale transfers flow to the DeFi platform.
However, the report said that last year’s DeFi transactions in North America were dominated by retail investors, and many transactions were below $10,000. Uniswap is the most popular DeFi platform in North America, with users sending more than $100 billion in transaction volume between July 2020 and June 2021.
“Right now, the audience for DeFi is still cryptocurrency insiders,” said David Gogel, head of growth at dYdX. “These are people who have been working in this industry for a while and have enough funds to try new assets.”
In addition, the cryptocurrency market in East Asia has been in decline. Although the East Asia region still received $591 billion in cryptocurrency transactions between July 2020 and June 2021—a year-on-year increase of 452%, the company included this in its analysis. The area is marked as the “slowest growth” area.