Chainalysis: Italy is among the leaders of the crypto market in Europe

The new and recent analysis by Chainalysis reveals that Italy received 54 billion dollars in crypto between July 2023 and June 2024, positioning itself among the main European economies in the sector, driven by the growth of stablecoins and DeFi.

Let’s see all the details in this article.

Summary

• With an inflow of $54 billion in crypto, Italy climbs the European rankings, according to Chainalysis
• The role of European regulations
• The push of DeFi in Europe and some future prospects

With an inflow of $54 billion in crypto, Italy climbs the European rankings, according to Chainalysis

In recent years, Italy has seen a significant increase in the adoption of crypto, positioning itself as one of the leading European economies in this rapidly growing sector.

Between July 2023 and June 2024, Italy received 54 billion dollars in on-chain cryptocurrencies, according to a recent report by Chainalysis, the leading platform in blockchain data analysis.

This result places Italy in sixth position among the economies of criptovalute in Central, Northern, and Western Europe (CNWE), surpassing Switzerland and Portugal.

The research by Chainalysis highlights that the European cryptocurrency market, particularly the CNWE region, has become the second largest global economy in the sector, with an overall inflow of 987.25 billion dollars during the same period.

This volume represents 21.7% of global transactions, making the region a strategic hub for the development and spread of cryptocurrencies.

The influx of cryptocurrencies in Italy has been primarily driven by the increase in the use of stablecoin, digital assets tied to fiat currencies like the US dollar.

These financial instruments have gained increasing popularity in Europe for their stability, facilitating safer transactions in a market characterized by high volatility.

Between July 2023 and June 2024, stablecoins accounted for almost half of the total cryptocurrency inflows in the CNWE region, reaching 422.3 billion dollars.

The use of stablecoin in Italy reflects a general trend that is observed throughout Europe.

According to Chainalysis data, stablecoins have experienced exponential growth in Europe, with a trading volume 2.5 times higher than in North America for transactions under 1 million dollars.

This increase highlights how stablecoins are becoming the preferred tool for daily transactions and small-scale investments.

The role of European regulations

A crucial element for the future of the cryptocurrency market in Italy and Europe is the evolution of the regulatory framework.

The European Union has recently introduced the Markets in Crypto-Assets (MiCA) regulation, which will come fully into effect in December 2024 and aims to regulate crypto-asset service providers (CASP).

This regulatory framework will be essential to ensure the security of investments in cryptocurrencies and protect consumers.

Despite some regulatory uncertainties, experts believe that the new European laws could encourage a wider and more regulated adoption of cryptocurrencies.

Matthias Bauer-Langgartner, Head of Policy Europe at Chainalysis, emphasized that the MiCA, if implemented correctly, could help promote a thriving but secure cryptocurrency market.

However, greater clarity will be necessary to ensure that all stakeholders can effectively adapt to the new rules.

In addition to the growth of stablecoins, another key sector for the cryptocurrency market in Europe is that of decentralized finance (DeFi).

The CNWE region has established itself as the fourth largest economy in the world for DeFi growth, with a volume of 270.5 billion dollars in the last year.

Decentralized exchanges (DEX) have played a crucial role in this development, while other sectors of DeFi, such as decentralized lending and NFTs, have seen a more contained growth.

Despite some fluctuations, DeFi remains a vital component of the cryptocurrency market in Europe. Furthermore, it continues to attract investors thanks to its transparency and autonomy compared to traditional financial systems.

The push of DeFi in Europe and some future prospects

Looking to the future, the cryptocurrency market in Italy seems destined to grow further, fueled by the adoption of stablecoins and the continuous evolution of DeFi.

However, much will depend on how the country and the European Union will manage the emerging regulations.

With MiCA and other regulations ready to come into effect, the cryptocurrency sector will need to adapt to new requirements, but it could also benefit from increased trust from investors and users.

Italy is now well positioned to become one of the main players in the European cryptocurrency landscape.

As a result, with clear regulation and the ongoing interest in emerging technologies such as blockchain, the country could consolidate its position as a leader in this rapidly expanding sector.

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