In a compelling new research report by Greenfield Capital, a European firm specializing in crypto investments, a comprehensive exploration of the current state of the crypto landscape in Europe has been presented.
According to Greenfield’s blog post, “State of European Crypto Report,” was conducted with a unique approach that involved analytical assessments and the perspectives of founders deeply entrenched in the European crypto scene.
At the core of Greenfield’s investigation was the understanding that although a global phenomenon, crypto has unique regional characteristics. For Europe, this meant examining its specific strengths and challenges, the resources available to its crypto startups, and the regulatory environment that shapes its crypto market. The ultimate goal was to understand the state of crypto in Europe today and its potential trajectory in the future.
Greenfield’s report, based on feedback from European crypto pioneers and backed by analytical data, put forward six key insights:
Despite 2022 being a year of immense challenges, optimism about the future of European crypto remains high. The year was characterized by a weeding out of inauthentic players, setting the stage for a more resilient crypto landscape in 2023. Looking even further ahead, there is anticipation for crypto’s omnipresence by 2030.
Regulatory developments are viewed as the most pivotal aspect of crypto in 2023, with Europe, especially the EU, seen as leading the charge. The EU’s comprehensive and nuanced regulatory framework, known as MiCA, is seen as a key differentiator that could impact the competition between regional ecosystems in the future.
Lisbon emerges as the most important hub for crypto in Europe, even globally. Respondents attributed Lisbon’s prominence largely to its vibrant DeFi ecosystem. The Portuguese capital’s attractive tax environment further entices many companies and projects. Additionally, Lisbon is not only witnessing a surge of talent from within Europe but also capitalizing on what some founders perceive as a talent migration from the US crypto scene. New York City and Berlin ranked second and third, respectively.
Despite a dip in market share, the European Developer In Crypto (EDIC) Index, which features influential European crypto protocols and companies, continues to grow. The index recorded its highest quarterly increase in developer count (1,300 in Q1 2023), indicating a resilient talent pool that remains undeterred by market fluctuations.
As European crypto projects continue to mature, there is a growing need for commercial talent. Founders want to augment their teams with marketing, sales, and business development professionals. However, this is a challenge, given the current talent market conditions.
European universities are embracing the crypto wave by introducing dedicated master’s degrees. Hubs are cropping up primarily in the UK, Ireland, and Spain, with many new programs set to launch in winter 2023. These initiatives are expected to infuse the crypto sector with more commercial talent in the coming years.