Western Europe is a very vital market for the cryptocurrency industry, as it has become one of the fastest-growing cryptocurrency acceptance markets in the world. The daily number of trading participants in the region ranges from 1.2 to 1.5 million. Lately, the research division of the cryptocurrency exchange Bitget has published a report analyzing the structure and current landscape of the Western European cryptocurrency markets. In addition, analysts have identified key user preferences and made predictions about future trends in the cryptocurrency market. So what is the current state of the Western European crypto market?
The Dominance of Centralized Exchanges And Spot Trading
The report notes that Germany and France have become the leaders in terms of cryptocurrency trading in Western Europe. Austria, however, has shown extraordinary growth, recording a 70% increase in the number of cryptocurrency traders between December 2022 and December 2023. Analysts attribute this surge to the country’s progressive approach to investing in cryptocurrencies.
After analyzing local market trends and trading instrument preferences, analysts found that users in Germany, Switzerland, and the Netherlands prefer futures trading, while other countries lean toward spot trading.
When it comes to cryptocurrency trading, most Western European users prefer centralized exchanges, with CEX traffic exceeding DEX by a factor of 10. Among crypto users who prefer decentralized platforms, the most popular platforms were PancakeSwap and Uniswap. The most used wallets are Coinbase, Metamask, Bitget Wallet, and TrustWallet.
As for the former, it is also popular among other parts of Europe, including Ukraine, as it supports the UAHg-pegged stablecoin. The digital asset provides users with access to major exchanges, DeFi platforms, staking services, and many other applications. Specifically, UAHg has announced the introduction of a loyalty program for users, as well as several other activities with partners such as WhiteBIT, Bitcoin Global, GEO Pay, and others.
DeFi accounts for most cryptocurrency activity in Western Europe, while P2P trading volumes remain significantly low. Analysts note that one of the reasons for the limited spread of P2P cryptocurrencies in the region is the widespread practice of acquiring digital assets using fiat deposits or linked cards.
What Assets and Trend Topics in Western Europe Are Chosen by Investors
One of the trends in the Western European crypto sphere is participation in decentralized projects and familiarization with tools and trading on DEX, NFT, and Web3 platforms.
Regarding assets, new cryptocurrencies such as Ordinals, NFT, RWA, DePin, the Solana ecosystem, and meme coins attracted the most attention from traders. Trending topics and coins include the significant growth of the Solana ecosystem due to the launch of tokens and airdrops, as well as increased interest in Manta Network and Ondo Finance.
In addition, significant attention is being paid to second and third-tier networks such as CRO, FTM, and SUI. This indicates that even without particularly positive news or important announcements, users in the Western European region maintain a constant interest in these networks.
Trends in the Behavior of Western European Crypto Traders
The Bitget research emphasizes the high level of education among Western European users. In addition, they note that cryptocurrency users are cautious and prefer long-term investments. Participation in online and offline forums, including the Ask Me Anything (AMA) community, where they exchange information about the market and discuss industry trends, is also popular among local enthusiasts.
It is also important that users prefer legality and demonstrate a genuine interest in complying with Know Your Customer (KYC) and anti-money laundering (AML) rules aimed at protecting the interests of investors and ensuring the stability of the financial system without hindering technological innovation.
Forecasts of Future Trends in the Crypto Market
Summarizing, based on a comprehensive study of the European market, Bitget analysts predict the following developments in the Western European market in 2024:
Germany and France will retain their status as centers of cryptocurrency activity in Western Europe.
Due to the development of the cryptocurrency market and the growing adoption rate among Western European users, the number of DAUs involved in cryptocurrency trading in the Western European market is expected to grow from 700,000 in 2023 to approximately 1.2–1.5 million by 2024.
Western European users will continue their engagement in on-chain interactions, with undiminished interaction with NFTs, DEXes, and blockchain games. Similarly,1 or 2 blockchain application projects incubated by Western European teams will emerge as leaders in their respective sectors.
Decentralized exchanges will accommodate an increasing demand for on-chain transactions. Some emerging centralized exchanges, with their superior customer service and platform perks, will gain greater favor among Western European users, thereby capturing a larger market share.
With rising engagement in Solana ecosystem projects, wallets like Phantom and Bitget Wallet that integrate various blockchain ecosystems will see significant gains, increasing their market share in the Western European market.
Summary
Western Europe plays a key role in the cryptocurrency market due to its rapid development and large number of users. Forecasts emphasize the further growth of the crypto market in the region. In addition, the study emphasizes the importance of a regulated approach and active user participation in shaping the future of the cryptocurrency industry in Western Europe.