Digital analytics firm Chainalysis said the growth in the North American cryptocurrency market has been driven by the increasing popularity of decentralized finance.

In its 2021 Geography of Cryptocurrency Report, Chainalysis reports that monthly transaction volume for cryptocurrencies in North America grew by more than 1,000% from July 2020 to June 2021. Monthly volume peaked at $164 billion in May 2021 and then fell to just over 100. one billion. in June.

Decentralized finance, or DeFi, is largely responsible for keeping North America in its position as one of the largest cryptocurrency markets in the world, according to the report. DeFi transactions accounted for 37% of total transaction volume in North America from July 2020 to June 2021, as residents sent nearly $276 billion in cryptocurrency to platforms in the DeFi space.

Central, Northern and Western Europe sent the largest number of cryptocurrencies totaling $389 billion, accounting for about 40% of the total transaction volume over the same time period. Chainalysis said the “Whales of DeFi” is responsible for transforming the region into the world’s largest cryptocurrency economy, with most institutional-sized transfers directed to decentralized financing platforms.

However, the report states that DeFi transactions in North America were carried out by private investors last year, with many transactions under $10,000. Uniswap was the most popular DeFi platform in North America, with users sending over $100 billion in transactions between July 2020 and June 2021.

“For now, DeFi is targeting crypto insiders,” said David Gogel, head of growth at dYdX. “These are people who have been in this field for a while and have enough money to try new assets.”

On the topic: Is the cryptocurrency center moving out of East Asia?

In addition, the cryptocurrency market in East Asia is shrinking, possibly due to regulatory measures against the cryptocurrency industry and mining in China. Chainalysis reports that China’s P2P trading volume has fallen significantly over the past year, placing the country at 155th globally, up from 53 a year earlier. Although East Asia continued to receive $591 billion in crypto transactions between July 2020 and June 2021 — a 452% increase over the same period last year — the company described the region in its analysis as “slow-growing.”

“Mining is not the only part of China’s crypto-economy that has experienced repression,” Chainalysis reports. “The government has taken other measures such as cracking down on cryptocurrency in state-sponsored media, posting official warning messages on crypto-related apps, and possibly using social media to suppress crypto-related content.”

Source: CoinTelegraph