Western Europe: The Backbone of the Crypto Market

Bitget App

Trade smarter

Bitget

News

Bitget Research2024/03/28 10:00

By:Bitget Research

Western Europe has become an indispensable part of the cryptocurrency world.

Western Europe has become an indispensable part of the cryptocurrency world.

Overview

Western Europe is a very important market for the cryptocurrency industry, with daily trading participants in the region ranging from 1.2 million to 1.5 million. Among the eight Western European countries, Germany and France stand out as the most active countries in cryptocurrency activities.
In terms of regulatory environment, the crypto policy in eight Western European countries is generally aligned with the European Union, overall maintaining an open attitude toward cryptocurrency regulation and providing a stable and transparent regulatory environment.
In terms of chain preferences, Users in Western Europe love participating in decentralized projects, are familiar with DEX and other on-chain tools, and prefer popular chains and the Solana ecosystem.
In terms of trading preferences, Western European users are generally keen on spot trading, while Germany, the Netherlands, and Switzerland show a stronger preference for futures trading. Overall, there is a high level of acceptance for emerging and popular assets like NFTs and memecoins.
In terms of centralized exchange preferences, there has been a fluctuating upward trend in traffic to centralized exchanges in Western Europe over the past year, indicating a higher demand among Western European users for centralized exchanges compared to decentralized ones. For decentralized exchanges, Western European users primarily utilize leading decentralized exchanges on various chains such as Uniswap and Pancakeswap. The most commonly used wallets include TrustWallet, Metamask, Coinbase Wallet, and Bitget Wallet.
Lastly, combining the above analysis, Bitget Research has made five major predictions regarding the future trends of the Western European cryptocurrency market.

Introduction

Western Europe, the birthplace of many cultural movements and scientific developments, has nurtured and propagated significant events such as the Renaissance, the Enlightenment, and the Industrial Revolution. Currently, with its developed economy and its open-minded people, Western Europe has become one of the regions with the highest cryptocurrency adoption rates in the world.

The cryptocurrency trading habits and preferences of Western European users are distinct. However, due to the variety of countries within Western Europe and the differences in their policies, cultures, and habits, the characteristics of cryptocurrency users vary across the region.

This report provides a comprehensive introduction to the current state of the Western European crypto market through in-depth market research. It assists not only Western European users in finding their ecosystem positioning and like-minded communities, but also Web3 project teams and crypto institutions to better understand and expand into the Western European market.

1. Market Overview

1.1 Regional Overview

According to the United Nations, Western Europe comprises eight countries: Germany, France, Switzerland, the Netherlands, Belgium, Austria, Luxembourg, and Liechtenstein.

In terms of overall cryptocurrency volume and adoption, Western Europe ranks second globally. Based on the Chainalysis 2023 Adoption Index, Germany, France, and the Netherlands have relatively high levels of adoption, ranking between 20th and 40th worldwide; Switzerland, Belgium, and Austria have lower levels of adoption, ranking between 60th and 85th; Luxembourg ranks beyond 120th. This report will not focus on Liechtenstein in detail, due to limited data and information available.

Western European countries generally exhibit characteristics of “large cryptocurrency volumes, high DeFi activity levels, and slightly weaker P2P trading volumes.”

Western Europe: The Backbone of the Crypto Market image 0

The ranking scores of Western European countries are primarily supported by "DeFi usage and DeFi trading volume," while their P2P trading volume rankings are notably lower than their overall rankings. This is mainly because Western European users are more accustomed to buying tokens with linked bank cards and fiat deposits, unlike users in Southeast Asia who prefer using P2P for fund transfers.

Germany and France are the two most active countries in crypto activities within Western Europe .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.

In April 2023, the German government passed the "Future Financing Act" to regulate the custody of crypto assets and provide bankruptcy protection. Additionally, Germany has a strong historical foundation in blockchain technology development, such as being ranked second globally in Bitcoin full node operations.

The French Financial Markets Authority (AMF) has actively responded to the EU's crypto asset regulations and set additional technical standards for the industry. Some major digital asset players in the country are prioritizing the exploration of DeFi. Notably, France saw significant growth in DeFi trading volume in November 2022 and May 2023, likely as users sought trading opportunities through DeFi tools amid events such as the FTX collapse, the Silicon Valley Bank crisis, and the de-pegging of USDC.

1.2 Cryptocurrency Policy and Cultural Impact

Most Western European countries are part of the EU, so their cryptocurrency policies mainly reference EU crypto regulations. Although there are slight differences in crypto policies among these countries, they generally maintain a crypto-friendly stance, with comprehensive regulations on anti-money laundering and KYC. From a cultural and religious perspective, Western European users maintain an open attitude towards blockchain technology and cryptocurrencies, eager to explore new technologies and innovations.

In terms of specific policies, the MiCA (Markets in Crypto-Assets Regulation) proposed by the European Commission aims to establish a unified EU crypto market to promote digital innovation and financial market development while providing more protection for consumers and investors. In terms of cryptocurrency definitions, crypto assets are recognized as assets within the EU, with tokens other than tokenized securities not classified as securities. Crypto assets are categorized into four main types: Crypto Assets, Utility Tokens, Asset-referenced Tokens(ART), and Electronic Money Tokens(EMT).

Germany, France, and the Netherlands are the most important crypto hubs in the Western European region. Their crypto policies indirectly influence the policy-making of neighboring countries, making their regulatory policies the most representative. Specifically:

Germany, one of the more open and innovative European countries, regulates cryptocurrencies mainly through the Federal Financial Supervisory Authority (BaFin). Despite strict regulations, Germany provides a stable and transparent regulatory environment for cryptocurrencies. Additionally, the country encourages the development and innovation of the digital asset market to promote digital economy growth.
France's cryptocurrency regulation, overseen by institutions like the Autorité des Marchés Financiers (AMF) and the Banque de France, is relatively open. France is actively developing its cryptocurrency regulatory framework to support innovation while ensuring market integrity and investor protection. The country's regulatory environment is characterized by inclusiveness and forward-thinking, generally consistent with European crypto regulations (MiCA).
The Netherlands, one of the first European countries to explore cryptocurrency regulations, regulates cryptocurrencies mainly through the Dutch Central Bank (DNB) and the Dutch Financial Markets Authority (AFM). The country's crypto policy is relatively strict, with a focus on investor protection. However, initiatives like the Dutch Blockchain Coalition and the "InnovationHub" established by DNB and AFM support and promote blockchain technology and innovation.

Aside from these three countries, Switzerland, Belgium, Austria, Luxembourg, and Liechtenstein have relatively open policies on cryptocurrencies and blockchain technology, offering a stable and transparent regulatory environment. These countries emphasize anti-money laundering and investor protection while encouraging the development of related industries.

In terms of cultural impact, most of the Western Europeans are Catholic, and Catholics do not significantly differ in their trading practices from the general population. They pay attention to the risks, volatility, and potential profits of cryptocurrencies. However, compared to non-religious or believers of other religions, they place greater emphasis on the moral and ethical implications of their financial decisions, such as considering principles of "honesty and justice," "social responsibility," and "community development" when investing in cryptocurrencies.

1.3 Market Size

In December 2023, the daily active users trading cryptocurrencies on centralized exchanges in the entire Western European region ranged from 640,000 to 750,000 . Following the approval of BTC Spot ETFs and the continuous increase in the total market cap of the cryptocurrency market, by February 2024, the daily active users trading cryptocurrencies on centralized exchanges in the Western European region reached approximately 1.2 million to 1.5 million .

In December 2023, Germany led Western European countries with a DAU range of 260,000 to 310,000, followed by France and the Netherlands, with DAUs in the range of 100,000 to 150,000. Switzerland, Austria, and Belgium had DAUs in the range of 40,000 to 60,000.

Western Europe: The Backbone of the Crypto Market image 1

The estimates show:

Globally: Compared to the same period in 2022, Western Europe in December 2023 generally had a weaker traffic rebound than India (59% year-over-year growth), Turkey (39% year-over-year growth), and was on par with Vietnam (21% year-over-year growth) and South Africa (26% year-over-year growth), but stronger than Russia (19% year-over-year decrease).

Among Western European countries: Germany and Austria experienced the fastest growth in trading user numbers in December 2023 compared to December 2022, with increases of 69% and 70%, respectively. This is significantly higher than the growth rates of other Western European countries (15% to 20%).

2. Local Users Profiles

Each of the eight Western European countries has distinct user characteristics. The second part will analyze the characteristics of cryptocurrency users in the Western European region from three dimensions: user trading habits, popular projects and sectors, and local social communities and networks.

2.1 User trading habits

2.1.1 Overall user profile in Western European countries

Image: Word cloud of cryptocurrency usage habits in Western Europe

Western Europe: The Backbone of the Crypto Market image 2

Source: Google Hot Searches

Western European users are open to cryptocurrency trading and engaging with projects, characterized by the following:

The general level of education in Western Europe is relatively high, meaning users tend to have a deeper understanding of the technical principles of cryptocurrencies and market dynamics.
Western European users are cautious investors in cryptocurrencies, focusing on long-term profits. Thus, they are more involved in spot trading and Crypto Yield/yield farming.
Users in this region are keen to participate in various online forums, community AMAs, and offline gatherings to exchange market information, talk about technology and individual experiences, and discuss market trends.
Western European users value legality, paying close attention to anti-money laundering and KYC regulations when using cryptocurrencies.

2.1.2 Trading and interaction habits of users in Western European countries

Germany

In terms of trading, Germans prefer futures trading, mainly trading mainstream cryptocurrencies, with nearly half of them primarily trading BTC. In terms of spot trading, about 10% of German users speculate on memecoins. Additionally, about a quarter of German users express interest in trading NFTs.

In terms of application interaction, according to the report "Cryptocurrency Holders in Germany" by Statista, German users rank highly globally in participation in gaming projects like Alien Worlds and Gala Games. They also engage in Dex Tools, Web3 task platforms, IDO platforms, and DeFi projects, indicating high acceptance of on-chain projects.

France

In terms of trading, unlike Germans, French users prefer spot trading and tend to hold for the long term. According to data from Triple A, 72.8% of cryptocurrency traders trade BTC; 45.3% of French users hold cryptocurrencies with a value less than €1000, indicating a preference among French users to treat cryptocurrencies as a means of diversifying their investments.

In terms of application interaction, French users rank highly globally in participation in Galxe (Web3 tasks), Splinterlands (gaming), GMX (DeFi), and HOOKED (Web3 education) projects, with a significant scale of participation in other sector projects, indicating high acceptance of on-chain projects.

The Netherlands

In terms of trading, Dutch people primarily engage in futures trading. Many influencers on YouTube share cryptocurrency trading tips, mainly focusing on technical indicators and futures, which significantly influences Dutch users' trading habits.

In terms of application interaction, Dutch users show notable participation in the DeFi sector projects, with Dydx participation ranking highly globally. Following that, projects like Dextool and Web3 task platforms also see significant engagement. Overall, the participation level in terms of traffic is above average globally, indicating a strong acceptance of DeFi, DEXes, and altcoins among Dutch users.

Swiss users' trading habits resemble those of Germany, while Belgian users' habits are similar to those of the Netherlands. When it comes to choosing dominant local exchanges, Swiss and German users prefer Bitpanda, whereas Belgian and Dutch users favor Bitvavo.

Austria, Luxembourg, and Liechtenstein: Due to the smaller number of user samples in these countries, aggregated results may have significant inaccuracies and are not specifically summarized. The habits of their users are similar to those in the surrounding five Western European countries.

2.2 Popular Sectors and Projects

Western European users show a keen interest in participating in decentralized projects, familiar with on-chain tools such as DEX, and prefer popular chains and the Solana ecosystem.

2.2.1 Popular projects and sectors

Germany and France user traffic for popular projects (July 2023 - December 2023)

Western Europe: The Backbone of the Crypto Market image 3

Western Europe: The Backbone of the Crypto Market image 4

Data source: SimilarWeb

Germany: German users show high participation in Dextools (on-chain tokens), Web3 task platforms, and NFT trading.The top ten visited projects include four on-chain market websites similar to Dextools, indicating a high enthusiasm for trading memecoins; followed by Web3 task platforms and NFT trading, showing German users have a deep understanding and acceptance of the decentralized ecosystem.

France: French users have the highest participation in the decentralized ecosystem within the Western European region, using on-chain Dex tools and trading on DEXes with very high traffic. NFT trades mainly occur on platforms like OpenSea and Magic Eden. However, a smaller number of users engage with Sandbox and Axie, indicating low penetration in the gaming sector.

The Netherlands and Switzerland user traffic for popular projects (July 2023 - December 2023)

Western Europe: The Backbone of the Crypto Market image 5

Western Europe: The Backbone of the Crypto Market image 6

Data source: SimilarWeb

The Netherlands: Dutch users exhibit a high level of engagement with DEX tools and NFT platforms, complementing their usage with DEX trades. They have a solid foundation in utilizing decentralized applications, with diverse involvement in DeFi and Social sectors.

Switzerland: Participation in the decentralized ecosystem is not high in Switzerland, mainly using DEXes and tools like Uniswap. NFTs see some usage, but participation in other sectors is extremely low.

Belgium and Austria user traffic for popular projects (July 2023 - December 2023)

Western Europe: The Backbone of the Crypto Market image 7

Western Europe: The Backbone of the Crypto Market image 8

Data source: SimilarWeb

Belgium: Belgian users primarily engage in NFT trading and use DEX tool products, with the highest traffic on OpenSea and Dex Screener. However, the overall base in the Western European region remains low, with virtually no participation in other sectors.

Austria: There is barely any participation in the decentralized ecosystem in Austria, only with significant usage of OpenSea and mainstream DEXes.

Luxembourg and Liechtenstein: Due to the smaller number of user samples in these countries, aggregated results may have significant inaccuracies and are not specifically summarized. User habits are similar to those in the surrounding Western European countries.

2.2.2 Top crypto topics of interest among Western European users in the last three months

Based on Google Search, what Western European users are focusing on:

Western Europe: The Backbone of the Crypto Market image 9

Based on the search interest for cryptocurrency-related terms on Google by Western European users from December 1, 2023, to February 29, 2024, the main focuses of users in the Western European region were on:

(1) Solana Ecosystem (JUP, BONK, ORCA and DePIN projects):

In Q4 2023, following the announcements of token launches and airdrops by JUP, PYTH, and JTO, which generated significant traffic and wealth effects, the fundamental data of the entire Solana ecosystem experienced a strong uptrend. The TVL doubled in a single month, and the trading volume of the ecosystem's leading DEXes hit new highs.

The significant increases in Helium (HNT), Helium Mobile (MOBILE), and Hivemapper (HONEY), along with listings on multiple prominent exchanges, brought the DePIN sector into the mainstream focus. With HNT's price previously reaching as high as $50 and currently under $10, the market is filled with anticipation for its future growth.

(2) Manta:

Manta Network released its tokenomics in mid-January, and on January 18, started the "Into the Blue" airdrop claiming. The ecosystem's TVL continued to rise before and after the airdrop, and the token was listed on multiple prominent exchanges. Subsequently, it was widely discussed by the community and media due to a DDoS attack.

In late February, the re-staking liquidity staking project Ether.fi was launched on the Manta Pacific platform, enabling Manta Pacific users to stake ETH in the Ether.fi protocol.

(3) ONDO:

RWA protocol Ondo Finance announced its ecosystem directory in late January, partnering with providers in liquidity, custody, and other key areas. This includes asset management and trust companies such as Morgan Stanley and BlackRock.

Initially focused on the LaaS (Liquidity as a Service) sector, Ondo Finance transitioned to the RWA sector in January 2023. The rapid growth in TVL marks a successful example of transitioning during a project bottleneck.

(4) Close attention to second and third-tier chains:

The presence of CRO, FTM, and SUI on the list indicates that, even without particularly positive news or major announcements, users in the Western European region have maintained a continuous interest in these chains.

Western Europe: The Backbone of the Crypto Market image 10

Germany: During this period, the search volume for Robinhood was the highest, suggesting a significant overlap between stock investors and cryptocurrency traders, or that a group of users in Germany might prefer trading cryptocurrencies on Robinhood.

In France, the Netherlands, and Belgium, the top search term during this period was Manta, likely due to the rapid growth in TVL around the time of the ecosystem's airdrop and the attention garnered from DDoS attacks reported by multiple English-language media outlets.

Interest in second and third-tier chains varied by country during this period:

German users showed more interest in Injective and Sui.
French users focused on MANTA and the modular settlement Layer 1, Dymension (DYM).
The top search in Switzerland was unexpectedly Polkadot (DOT), as Polkadot has been relatively quiet throughout the past bear market cycle and recent rebound.
Dutch users were interested in Bitcoin Layer 2 project Stacks, and the Cronos chain.
Belgian users focused on Sui, Avalanche, and Elrond.
Austrian users showed interest in Polygon.

2.3 Local Social Community and Networks

Western Europe: The Backbone of the Crypto Market image 11

In Western European countries, local communities mainly engage with Twitter and YouTube, primarily using the official languages of each country, though English content is also quite popular throughout the region.

Regarding content discussion, each country's understanding of and focus on blockchain technology varies, covering topics from the impact of macroeconomics and hot news on token prices, detailed trading analysis, and overviews and endorsements of memecoins and altcoins, to basic knowledge such as "how to create a smart contract" or "how to trade memecoins."

3. Competitive Landscape and Platform Advantages

3.1 Centralized Exchanges

In terms of the growth rate of unique visitors to centralized exchanges among Western European users:

Over the past year, the overall traffic to centralized exchanges from Western European users has shown a significant upward trend, especially in Germany, Switzerland, and the Netherlands. Germany and Switzerland saw a year-over-year increase of more than 50%, with the Netherlands experiencing a growth rate of 145%. However, the growth in France and Belgium was not as pronounced, with Belgium even seeing a 6.8% decline compared to the same period last year.

In terms of absolute numbers of visits to centralized exchanges by Western European users over the past year:

(1) Germany and France's monthly average unique visitor exceeded 1 million, with Germany leading significantly at 1.78 million.

(2) The traffic to decentralized exchanges is only one-tenth that of centralized exchanges. For example, in Germany, the unique visitor count to mainstream decentralized exchanges was under 150k in the past year, while the visitor to centralized exchanges was 11.8 times that number. The situation in other Western European countries is similar to Germany, with centralized exchanges remaining the primary platform for cryptocurrency trading, approximately ten times the volume of decentralized exchanges.

Western Europe: The Backbone of the Crypto Market image 12

3.2 Decentralized Exchanges

Western European users frequently utilize decentralized exchanges, with their usage primarily focused on leading decentralized exchanges on various chains, such as Uniswap, Pancakeswap, and Raydium. There has also been usage of decentralized exchange aggregator products like 1inch and Jupiter.

Most users access these decentralized exchanges directly, while some use Google search or social media links to log in. This indicates that Western European users place a high value on the reputation of decentralized exchanges, and once they develop a habit of using a particular platform, they tend to show a degree of brand loyalty.

Western Europe: The Backbone of the Crypto Market image 13

Germany

DEX competitive landscape

Among Western European countries, German users have a higher proportion of decentralized exchange usage, with Uniswap, PancakeSwap, and 1inch being some of the most used DEX products. Across various chains, top DEXes on chains like Ethereum, BSC, Solana, Avalanche, and Cosmos show high traffic levels in Germany. With the resurgence of the Solana ecosystem from October to December 2023, Solana-related decentralized exchanges like Raydium have seen a resurgence in traffic.

DEX traffic sources

German users primarily access decentralized exchange websites through direct searches. Notably, social media sites like Twitter and YouTube are common gateways for German users to enter DEXes, with cryptocurrency information and news websites like CMC, CG, and DefiLlama also driving significant traffic and conversions.

France

Summary of DEX competitive landscape

French users exhibit significantly higher traffic on PancakeSwap compared to other decentralized exchanges, indicating a preference for trading assets on the BSC. Top decentralized exchanges on other chains, such as Uniswap and TraderJoe, also stand out. With the resurgence of the Solana ecosystem from October to December 2023, Solana-related decentralized exchanges like Raydium have seen a resurgence in traffic.

DEX traffic sources

Similar to German users, French users typically access decentralized exchanges through direct login, Google search, links on social media networks and cryptocurrency information websites.

Western Europe: The Backbone of the Crypto Market image 14

The Netherlands and Switzerland

Summary of DEX competitive landscape

In both the Netherlands and Switzerland, user traffic on Uniswap far exceeds that of other decentralized exchanges, indicating a preference for trading assets on the Ethereum chain and EVM-compatible chains. Top decentralized exchanges on other chains, such as PancakeSwap, also stand out. Notably, aggregator decentralized exchanges like 1inch, Woo, and Jupiter are among the commonly used DEXes by users in the Netherlands and Switzerland, highlighting a focus on transaction convenience.

DEX traffic sources

Similar to users in other Western European countries, users in the Netherlands and Switzerland primarily access decentralized exchanges through direct login, Google search, links on social media networks and cryptocurrency information websites. Other search engines like DuckDuckGo and Yandex Search are also used, with the former being an anonymous search engine and the latter being the largest search engine in Russia.

Western Europe: The Backbone of the Crypto Market image 15

Belgium and Austria

Summary of DEX competitive landscape

In Belgium and Austria, user traffic on Uniswap far exceeds that of other decentralized exchanges, indicating a preference for trading assets on the Ethereum chain and EVM-compatible chains. Other chains' top decentralized exchanges, such as Osmosis and PancakeSwap, also stand out. Notably, Osmosis, a decentralized exchange within the Cosmos ecosystem, receives significant attention from local users.

DEX traffic sources

Similar to users in other Western European countries, users in the Belgium and Austria primarily access decentralized exchanges through direct login, Google search, links on social media networks and cryptocurrency information websites. The blockchain-based search engine Presearch also features among the search engines used by Belgian users to find decentralized exchanges, suggesting a considerable user base for the project in the region.

Due to the smaller number of user samples in Luxembourg and Liechtenstein, aggregated results may have significant inaccuracies, hereby, the report will not specifically summarize. Their users' habits regarding DEX usage are similar to those in other Western European countries.

3.3 Wallets

Western Europe: The Backbone of the Crypto Market image 16

(Note: Some renowned wallets, such as the Binance Wallet, share the same app with their centralized exchange, making it impossible to extract standalone traffic data, so they are not displayed in the table above.)

In terms of wallet usage, Trust Wallet, MetaMask, Coinbase Wallet, Phantom, and Bitget Wallet rank as the top 5 wallets in the Western European region.

Similar to most other regions, the top three wallets are Trust Wallet, MetaMask, and Coinbase Wallet. Launched in 2017, Trust Wallet enjoys a good early-mover advantage with its simple, user-friendly design that suits European users' habits. MetaMask also benefits from an early-mover advantage, with most EVM-compatible chain projects generally supporting it first, making these two wallets very popular in Europe.

Ranked third, Coinbase Wallet, Backed by Coinbase, gains traction due to the pre-existing user base of Coinbase exchange in Europe. The authority, security of Coinbase, and the feature allowing exchange assets to be interchanged with wallet assets also make Coinbase Wallet a popular choice.

Due to the surge in the Solana ecosystem's popularity, Phantom, the most favored native wallet for the Solana network, has seen a significant increase in downloads, moving up to the fourth rank. Rumors on social media about a potential token airdrop from Phantom have led some users to prefer using Phantom for interactions with Solana ecosystem projects in anticipation of the airdrop.

Bitget Wallet, known for its fast update and iteration speed, currently supports over 90 chains. It offers users a seamless trading experience through an innovative liquidity aggregation algorithm for swaps and features like on-chain anomaly alerts and smart market trends recommendations to help users spot trending projects. In the NFT space, Bitget Wallet’s marketplace is the first platform to allow purchasing NFTs with any cryptocurrency. Its deep understanding of user needs and quick response have brought its downloads to the fifth in the European region.

Conclusion

Western European countries, characterized by their developed economies, high general education levels, and openness to new things, rank as one of the regions with the highest cryptocurrency adoption in the world. This report delves into the "Market Overview," "Local Cryptocurrency User Characteristics," and "Competitive Landscape and Platform Advantages" of eight Western European countries as defined by the United Nations.

From a market overview perspective, the overall volume and acceptance of cryptocurrencies in Western Europe place it in the world's second tier. The region displays characteristics of “large cryptocurrency volumes, high DeFi activity levels, and slightly weaker P2P trading volumes.” Daily active users on centralized exchanges across Western Europe range between 1.2 and 1.5 million, with France and Germany being the most active cryptocurrency hubs.

Considering regulatory and cultural influences, most countries surveyed are part of the EU, with their cryptocurrency policies primarily aligning with EU regulations, adjusted to local legislation and laws. Crypto regulations are relatively comprehensive, particularly in areas of anti-money laundering and KYC, aimed at protecting investors' interests and ensuring financial system stability without hindering technological innovation.

Western European users are generally well-educated and risk-conscious in their cryptocurrency investments, actively participating in forums and community AMAs. Specifically, the cryptocurrency user characteristics in these eight countries include:

Investing in cryptocurrencies through a combination of contracts and spot trading, mainly in mainstream assets.
Among popular sectors and projects, high participation in decentralized projects, familiarity with DEX tools and trading, NFTs, and Web3 platforms, and active engagement in popular chain ecosystems like Solana.
Local communities mainly engage with Twitter and YouTube, primarily using the official languages of each country, though English content is also quite popular throughout the region.

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. The data variation among decentralized exchanges is minimal, with users mainly utilizing top applications like Uniswap, Pancakeswap, and 1inch based on market trends and ecosystem developments. Regarding wallets, Trust Wallet, MetaMask, Coinbase Wallet, Phantom, and Bitget Wallet are the top 5 wallets in the region.

Finally, based on this comprehensive study of the European market, Bitget Research anticipates the following developments in the Western European market for 2024, for readers' reference:

Germany and France will maintain their status as the centers of cryptocurrency activity in Western Europe.
With the cryptocurrency market warming up and the adoption rate among Western European users increasing, the DAU participating in cryptocurrency trading in the Western European market is expected to rise from 700,000 in 2023 to approximately 1.2 to 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. It is likely that 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.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.

APR up to 10%. Always on, always get airdrop.

Lock now!