Eastern Europe Records Increased Crypto Adoption with DeFi Driving 33% of Transactions

Eastern Europe has recorded increased crypto adoption, with DeFi transactions as the key driver. The region received more than $499 billion worth of crypto assets between July 2023 and June this year.

Moreover, Eastern Europe contributes over 11% of the total crypto value worldwide and ranks as the fourth-largest global crypto market.

DeFi Transactions Fuel Crypto Adoption In Eastern Europe

Eastern Europe has recorded significant growth in its crypto adoption within the past few months. In a recent report, on-chain analytics company Chainalysis indicated the region received about $499.14 billion between July 2023 and June 2024.

Further, the report revealed that the region now ranks globally as the fourth-largest crypto market. Its digital assets activity accounted for 11% of the cumulative global inflows within the period under analysis.

In detail, decentralized finance (DeFi) activity within Eastern Europe saw a remarkable surge. The region recorded over $165 billion of DeFi-related transactions, representing a third of its total crypto deals within the period.

Amid the events of war and turbulence within the region, DeFi activity grew by almost 40% in Eastern Europe. Moreover, decentralized exchanges (DEXes) witnessed more inflows, especially from Russia, Ukraine, Poland, and Belarus.

These positive indications placed Eastern Europe third in global DeFi adoption, only behind Latin America and Sub-Africa.

Amid the growing DeFi engagement, centralized exchanges (CEXs) still dominate crypto activity within the region. The report indicated that the CEXs received more than $324 billion in crypto asset transactions.

Russia and Ukraine Lead Crypto Adoption In Eastern Europe

Russia and Ukraine pioneer crypto adoption and growth within Eastern Europe with remarkable crypto transaction volumes amid their ongoing war and turbulent events.

According to Chainalysis, Russia recorded over $182 billion in crypto assets flows to emerge at the top. Ukraine trails in the second position, with transaction flows amounting to more than $106 billion.

Also, DEXs in Russia and Ukraine posted inflows growth of over 173% and 160%, respectively.

Meanwhile, the Chainalysis report indicated that Ukraine and Russia ranked sixth and seventh in the 2024 global crypto adoption index.

Ukraine made the most drive in the market's activity in institutional and professional transfers. The country's prominent activity came from large institutional transfers of over $10 million and mid-sized institutional transfers between $1 million and $10 million.

A leading CEX in Ukraine, WhiteBIT, acknowledged the positive overturn of crypto transactions.

WhiteBIT told Chainalysis: Institutional and professional crypto transfers in Ukraine have surged as many seek financial stability amid the ongoing war, with cryptocurrencies viewed as a safer alternative."

Also, WhiteBIt highlighted certain factors that fueled the spike in crypto adoption and transfers in the country. These include inflation, market volatility, war-related sanctions, and the increasing institutional attraction in Bitcoin ETFs from issuers like BlackRock.

Citing order book data, the Chainalysis report also noted that Bitcoin acquisition via the Ukraine hryvnia surged drastically over the past year, above $882 million. This trend reflects that Ukrainians have potentially adopted Bitcoin as a reliable store of value and inflation hedge.

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