The new and recent analysis of On-Chain Analysis reveals that Italy received $54 billion in crypto between July 2023 and June 2024, positioning itself among the leading European economies in the sector, driven by the growth of stablecoins and DeFi.
Let’s see all the details in this article.
With an influx of $54 billion in crypto, Italy climbs the European rankings, according to Chainalysis
In recent years, Italy has seen a significant increase in crypto adoption, positioning itself as one of the leading European economies in this rapidly growing sector.
Between July 2023 and June 2024, Italy received $54 billion in on-chain cryptocurrencies, according to a recent report from Chainalysis, the leading blockchain data analysis platform.
This result places Italy in sixth place among the Central, Northern and Western European (CNWE) cryptocurrency economies, surpassing Switzerland and Portugal.
The Chainalysis study 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 during the same period.
This volume represents 21.7% global transactions, making the region a strategic hub for the development and diffusion of cryptocurrencies.
The influx of cryptocurrencies in Italy is mainly due to the increase in the use of stablecoins, digital assets linked to fiat currencies like the US dollar.
These financial instruments have gained popularity in Europe due to their stability, facilitate 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.
Stablecoin usage in Italy reflects a general trend seen across Europe.
According to data from Chainalysis, stablecoins have grown exponentially in Europe, with trading volume 2.5 times that of North America for transactions under $1 million.
This increase highlights how stablecoins are becoming the preferred tool for everyday 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 recently introduced the Markets in Crypto-Assets (MiCA) Regulation, which will come into full force in December 2024 and aims to regulate crypto-asset service providers (CASPs).
This regulatory framework will be essential to guarantee the investment security in cryptocurrencies and protect consumers.
Despite some regulatory uncertainties, experts believe that new European laws could encourage wider and more regulated adoption of cryptocurrencies.
Matthias Bauer-Langgartner, The Head of Europe Policy at Chainalysis highlighted that MiCA, if implemented correctly, could help promote a thriving yet secure cryptocurrency market.
However, a greater clarity will be necessary to ensure that all stakeholders can adapt effectively to the new rules.
In addition to the growth of stablecoins, another key sector for the cryptocurrency market in Europe is decentralized finance (DeFi).
The CNWE region has emerged as the fourth largest economy in the world in terms of DeFi growth, with a volume of $270.5 billion last year.
Decentralized exchanges (DEXs) 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 an essential component of the cryptocurrency market in Europe. Additionally, it continues to attract investors thanks to its transparency and autonomy from traditional financial systems.
The DeFi push in Europe and some future prospects
Looking to the future, the cryptocurrency market in Italy appears destined to grow further, fueled by the adoption of stablecoins and the continued evolution of DeFi.
However, much will depend on how the country and the European Union handle emerging regulations.
With MiCA and other regulations set to come into effect, the cryptocurrency industry will need to adapt to new requirements, but it could also benefit from increased confidence from investors and users.
Italy is now well positioned to become one of the main players in the European cryptocurrency landscape.
Thus, with clear regulations and continued interest in emerging technologies such as blockchain, the country could consolidate its leading position in this growing sector.
