While the spotlight often falls on Asia and North America when discussing cryptocurrency adoption, Western Europe has been making significant strides in embracing digital assets.

In a recent report, Bitget Research has shed light on European countries' crucial role in the global cryptocurrency market. The region, known for its developed economies and open-minded populace, has emerged as a key player in the crypto industry, with daily trading participants ranging from 1.2 million to 1.5 million.

Germany and France Lead the Crypto Way

Among the eight Western European countries studied, Germany and France stand out as the most active hubs for cryptocurrency activities. According to the report, these two nations have seen significant growth in the number of users engaging with digital assets. Western Europe as a whole is the world's second-largest region in terms of crypto adoption.

“Observations of traffic to domains of more than 150 centralized cryptocurrency exchanges show that, over the past six months, the total visit volume from Germany and France was 48.17 million and 35.11 million, respectively, with the Netherlands ranking third with 30 million visits,” the Bitget’s report stated.

The number of active daily users on centralized cryptocurrency exchanges in Germany was 311,000 in December 2023, marking an improvement of 69% compared to December 2022. In France, there were 145,000 active users, which is an increase of 18% from the previous year. At 70%, the strongest growth was recorded in Austria, where the activity index reached nearly 60,000 investors daily over the year.

The growing interest in cryptocurrencies is also evident from the data of the report's author, Bitget Exchange. Its user base has increased to 25 million as of the end of February 2024, having grown by 5 million in just under three months.

Regulatory Alignment and Cultural Acceptance

The report highlighted that the crypto policies in Western European countries generally align with the European Union's stance and the MiCA regulations, maintaining an open attitude towards cryptocurrency regulation while providing a stable and transparent regulatory environment.

The report added that on top of Germany, France, and the Netherlands, “Switzerland, Belgium, Austria, Luxembourg, and Liechtenstein have relatively open policies on cryptocurrencies and blockchain technology, offering a stable and transparent regulatory environment.”

From a cultural perspective, Western Europeans have remarkably accepted blockchain technology and cryptocurrencies. The region's history of embracing innovation and new ideas has translated into a willingness to explore the potential of digital assets.

Chain Preferences and Trading Habits

Western European users have demonstrated a strong affinity for decentralized projects, showcasing their familiarity with decentralized exchanges (DEXs) and other on-chain tools. The report has revealed that users in this region prefer popular chains and the Solana ecosystem.

Regarding trading preferences, spot trading remains the most favored option among Western European users. However, countries like Germany, the Netherlands, and Switzerland have shown a stronger inclination towards futures trading. The report also noted a high level of acceptance for emerging assets, such as non-fungible tokens and meme coins.

These instruments have driven the volumes of cryptocurrency exchanges at the beginning of 2024, including in February when trading activity grew for the fifth consecutive month.

Centralized Exchanges Dominate, but DEXs Gain Traction

Centralized exchanges continue to be the primary choice for cryptocurrency trading in Western Europe, with traffic to these platforms showing a fluctuating upward trend over the past year. This indicates a higher demand among Western European users for centralized exchanges than their decentralized counterparts.

"In terms of competitive landscape and platform advantages, global centralized exchanges continue to dominate the market with a more diverse and comprehensive range of services," Bitget added.

However, the report also highlighted the growing popularity of leading decentralized exchanges across various chains, such as Uniswap and Pancakeswap. Western European users primarily utilize these DEXs and popular wallets like TrustWallet, Metamask, Coinbase Wallet, and Bitget Wallet.

As the cryptocurrency industry continues to evolve, Western Europe is poised to remain a driving force, shaping the future of digital assets and blockchain technology.