European Institutional Investors Are Embracing Ethereum DeFi: Chainalysis

The data shows that over the last 12 months, the majority of large institutional-sized transfers went to DeFi platforms. Given that, it’s not surprising that the majority of those large institutional transfers were made in Ethereum (ETH) and Wrapped Ethereum (WETH), an ERC-20 token of equivalent value to Ethereum commonly used in DeFi protocols.

“CNWE’s transaction volume grew significantly across virtually all cryptocurrencies and service types, but especially on DeFi protocols. An influx of institutional investment, signaled by large transactions, drove most of the growth, though retail activity also increased,” the researchers noted.

DeFi is a blanket term for a network of decentralized, non-custodial financial protocols focused on lending, yield farming, crypto derivatives, and other products. DeFi allows regular users to participate in a sprawling financial system without the need for any third-party intermediaries such as banks and other financial institutions.

The region of Central, Northern, and Western Europe (CNWE) has become the world’s largest cryptocurrency economy thanks to the proliferation of decentralized finance (DeFi), according to the latest report by crypto analytics firm Chainalysis.

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