East Asian cryptoindustry left Europe far behind

  • East Asia has confirmed its status as the biggest cryptomarket in the world.
  • It is 77% ahead of Europe in terms of the volume of cryptocoins transactions.
  • There is also a trend towards the growth of professional cryptomarket in North America.

The volume of crypto transactions to East-Asian addresses surpassed the same indicator in Western Europe by 77%.

A recent study by analytical company Chainalysis confirmed that East Asia has once again confirmed its status as the biggest cryptomarket in the world. It accounted for over 30% of all digital currency transfers in the past year.

Leadership by a significant margin

According to Chainalysis experts, according to the results of the last 12 months, the total value of cryptocurrency operations, the recipients of which were located in East Asia, exceeded $ 107 B. This value is 77% higher than that of Western Europe, which became the second largest recipient region.

Chainalysis believes that much of this leadership is due to high mining activity in Asia. For example, it is believed that China has the highest hashing power. The country accounts for about 65% of the global total.

As the report suggests, most bitcoins are mined in Asia, which provides the region with a massive influx of liquidity.

While much of the volume in East Asia is explained by a strong professional market, the activity of the retail market is undisputed, analysts added.

High liquidity makes the East Asian market the most self-sufficient in comparison with other regions globally. 44% of all transactions are carried out between regional addresses.

However, Chainalysis added that nevertheless, this region began to lose its share in the global cryptomarket in terms of activity. This may be partly due to the stagnation in the professional cryptocurrency trading segment, which forms about 90% of all volumes of the regional cryptocurrency ecosystem.
In addition, other regions of the world have become more active. Since the end of 2019, the dominance of the North American professional crypto market is clearly seen. Its lion’s share is formed by institutional investors who started investing in the cryptocurrency markets, giving a clear preference for bitcoin at that.

However, Asia is hardly going to give up its positions without a fight. Asia is actively developing blockchain technologies. So, at the moment, every South Korean top conglomerate has already officially invested in the blockchain.

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