Cryptocurrency market growth slows in East Asia and crypto trading volumes drop in China
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Answer Cryptocurrency market growth slows in East Asia and crypto trading volumes drop in China
Chainalysis, an American blockchain analytics firm, released a new research study Thursday showing that East Asia is the fourth largest cryptocurrency market, receiving $777.5 billion in cryptocurrency between July 2021 and June 2022.
This figure represents just under 13% of the global transaction volume during the time period mentioned above.
As a result, the study determined that East Asia lost ground to other regions this year.
East Asia saw a year-on-year growth in transaction volumes of just 4%, making the region with the lowest crypto activity this year, according to the report.
Last year, the region was ranked as the third largest region by volume of crypto transactions.Read:The founder of the Binance platform reveals a dangerous information that threatens the future of the crypto and Bitcoin market
The biggest reason for this loss is likely due to the decline in cryptocurrency activity in China, the largest market in the region.
The report identified that China saw its cryptocurrency transaction volume drop by 31% compared to last year’s period, yet its neighbors such as Japan more than doubled transaction volume.
The report revealed that this is most likely due to the crackdown by the Chinese government on crypto activity over the past year.
Combined with low crypto trading activity in the region, data indicates that East Asia has a surprisingly low percentage of DeFi adoption.
Over the year that Chainalysis conducted this report, decentralized finance accounted for only 28% of transaction volume in East Asia, lower than all but one other region – Eastern Europe – as shown in the columns below:
The data shows that the cryptocurrency market in Japan has grown significantly over the year studied, with the volume of transactions over the network increasing by 113.2% over the past 12 months, compared to 72% for the nearest country, South Korea, and 31.1% For China.
Crypto activities in Japan have grown due to the revised and compliant policy of crypto companies which encourages more companies to attract specialized companies in the field of cryptocurrency.Read:One satoshi is currently worth more than 7 national currencies
While China has seen a significant drop in cryptocurrency activity, this is likely due to the strict measures imposed by the government last year.
Despite a 31.1% drop in transaction volume, China remains the largest cryptocurrency market in the region, 4th overall in the world, and 10th in terms of adoption by Chainalysis’s Global Crypto Adoption Index.
While government crackdowns have had a clear impact, China’s cryptocurrency market remains strong, with healthy transaction volumes across both central and DeFi services.
The figure below shows that business activity in China has begun to recover in recent months, and even mining, which saw a massive drop in activity after the ban, has returned to the country.
Early this month, Chainalysis . released study Similar shows that emerging markets, such as the Middle East and North Africa (MENA), dominated this year’s global crypto adoption index.Read:How to buy real estate from nextearth
Latin America ranked second in terms of transaction volume growth, North America ranked third, and Central and South Asia lags behind.
South Africa classifies cryptocurrencies as a financial asset…details here
Hong Kong will soon launch its own CBDC digital currency
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