1.5M People Trade Crypto Daily in Western Europe, Germany Leads

On Mar 28, 2024

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.

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.