Originally published on: November 01, 2024
A recent report from the onchain analytics platform Chainalysis has revealed a significant surge in decentralized finance (DeFi) activity in Eastern Europe. This uptick showcases the region’s growing adoption of cryptocurrencies, with over $499 billion worth of digital assets flowing into Eastern Europe between July 2023 and June 2024.
According to the report, DeFi-related transactions accounted for a third of the total crypto value flow in the region, totaling more than $165 billion. This growth has positioned Eastern Europe as the fourth-largest cryptocurrency market globally, representing over 11% of the total crypto value received worldwide.
Despite the dominance of DeFi activity, centralized cryptocurrency exchanges (CEXs) continue to be the primary beneficiaries, receiving over $324 billion of the digital asset transactions in the region. Countries like Russia and Ukraine lead in crypto transaction value, with Russia receiving over $182 billion and Ukraine recording over $106 billion in crypto flows.
In Ukraine, institutional and professional transfers have been key drivers of the market’s growth, with large institutional transfers and mid-sized institutional transfers accounting for most of the transactions in 2024. Despite the ongoing war and international sanctions against Russia, crypto adoption remains strong in both countries.
Local CEXs, including WhiteBIT, maintain a robust presence in Ukraine, facilitating significant Bitcoin purchases using the Ukrainian hryvnia. This surge in Bitcoin transactions follows a period of economic instability in Ukraine, with the hryvnia experiencing inflation, prompting Ukrainians to turn to Bitcoin as an alternative store of value.
The Chainalysis report suggests that increased retail adoption of cryptocurrencies across Eastern Europe could bring new capital into the crypto space. As the region continues to embrace DeFi and explore new financial opportunities, the crypto boom in Eastern Europe shows no signs of slowing down. Stay tuned for more updates on the latest developments in the world of cryptocurrency and decentralized finance.
