Europe became a place especially active on cryptodespite key industry events in 2022. France n/a not to be ashamed it context. Analysis with Alexander Eich Gozzi on chain analysis.
2021 is a record year in many ways, including fundraising and estimates. In comparison, 2022 can be seen as a sudden stop for crypto and its financial use. Aside from the bear market, the industry and its companies have been hit hard by industry disasters like FTX.
At the beginning of the year, a study estimated the share of French people investing in crypto-assets at 8%. It expects an increase of 12% by the end of 2022. Events in 2022 may slow adoption.
It was asked Coins.co.uk, Alexander Eich GozziSenior Account Executive at chain analysispointed out that the bankruptcy of FTX will have a “global impact on the ecosystem”.
Alexandre Eich Gozzi, Senior Account Executive at Chainalysis
Europe Leads Cryptocurrency Adoption
This episode creates a “lack of confidence among some crypto players”, he continued. the OPPOSITION no doubt a barriers to adoption and the democratization of emerging uses. Luna, 3AC, Celsius and now FTX episodes thus threaten a positive momentum.
Because, as observed by the American publisher chain analysisme’Europe (Central, North, and West) are located “at the forefront of cryptocurrency adoption. Here it is most active region in terms of usage “. And in this place, the France 3rd rank, with a transaction volume of approximately $150 billion (July 2021 to June 2022). the UK can now more legitimately claim the status of crypto-hub with 233 billion. It is ahead of Germany ($180 billion).
At the global level, according to the Crypto Index produced by Chainalysis, France therefore occupies the 32nd position. So it has a long way to take a leading role in the adoption of crypto technologies, including NFT, in a very active Europe, at the macro level. Does the current winter however slow down this development? The expert is somewhat evasive, preferring to insist on the continuation of growth.
In France, the growth in the number of on-chain transactions increased by 13%. In Europe, in general, this increase is in the range of 1 to 40%. Germany is at the top with +47%. A particularity in the Netherlands whose activity fell by almost 3%”, Alexandre Eich Gozzi figures.
The tax, a driver of growth in France?
To explain this dynamic of Germany’s, Chainalysis develops a hypothesis: its tax regime and a 0% tax. This provision “encourages more individuals to transact and invest”. Similar effects in France cannot be included if, as suggested Bruno is the mayorthe government change the tax system in 2023 crypto-assets.
“Such factors can have an impact on the adoption of cryptocurrencies in a country”, says the private sector specialist, who also intervened in 2016/2017 as a DLT consultant within the ECB. However, an evolution of the crypto tax in France is not yet on the official agenda of the Ministry of Finance.
But even in France or in other markets, crypto (DeFi, NFT, etc.) is also a must other levers rather than political action. the institutional thus constituting a capital moving force. And for Chainalysis, this “pull” is real.
They are launching more and more, experimenting. Some have started issuing NFTs, especially CAC40 companies. These initiatives promote adoption and also contribute to raising public awareness connected to these brands and their news,” said Alexandre Eich Gozzi.
These experiments and these projects contributed to placing France in the “leading trio of Europe in metaversewhich is of interest to manufacturers, but also to the world of distribution”. However, this market continues to develop. Land purchases in virtual worlds are often part of an experiment and view well forward method.
NFT and DeFi attract new users
However, these parts of the crypto that is the metaverse, the NFT and the decentralized finance (DeFi) contribute to the growth of the sector as a whole, judge the structure of the company.
Crypto finds new workhorses. These uses of blockchain make it possible to attract users who are not necessarily interested in speculation”
About challenge, it remains nascent. And the proliferation of hacks in recent months could also slow its progress, adding to the effects of a bear market. NFTs are also no strangers to speculation and therefore volumes have decreased significantly in 2022.
For Alexandre Eich Gozzi, the trend is the development of non-fungible tokens that offer “utility”. Chainalysis closely follows these developments in the market to offer appropriate products, such as Story line.
Soon to be available, the solution makes it possible to conduct surveys and track the history of the use of NFTs. These are many use cases that are thus possible thanks to this type of tool. “
Technology offers, for example, the possibility for private companies to collect information on the use (buying, selling, price…) of their own NFTs, “like the way they circulate within the market”. Then they have levers for action to preserve their reputation in case of potential use of “actors at risk”.
Institutional traction in crypto
On the part of the public sector, and in particular law enforcement, Storyline is a tool investigation department, especially for investigations related to the theft of tokens. Chainalysis does not determine the identity of interested public customers. On the corporate side, however, it is permissible to cite a French client, Société Générale Forge. And this is not an isolated case, assures Alexandre Eich Gozzi Coins.co.uk.
In the French market, and elsewhere in Europe, we see real traction in the private sector. More and more banks are interested in crypto. Recently, we announced a partnership with the Bank of New York Mellon in the custody of financial assets.
The expert believes that the launch of crypto offers from these banking players is likely in the next 6 to 12 months “at the European level, and possibly in France”.
More and more institutions are participating. And this trend is confirmed in terms of volumes, with a share of almost 70%. Today, institutions are the main players in crypto. And that’s not surprising given their market share in traditional financial assets like stocks.
“Finally, crypto will migrate to a increasingly institutionalized economy. The retail segment is set to decrease “, highlights the Senior Account Executive of Chainalysis, illustrating this through the representation of institutions in the volumes of Coinbase and Binance.