Originally published on: November 01, 2024
The cryptocurrency landscape in Eastern Europe is witnessing a significant surge, with decentralized finance (DeFi) playing a major role in driving adoption, as reported by the onchain analytics platform Chainalysis.
Between July 2023 and June 2024, Eastern Europe saw an influx of over $499 billion worth of cryptocurrency transactions, with DeFi activity accounting for a substantial portion of the region’s crypto value flow, totaling more than $165 billion, according to Chainalysis’ latest crypto adoption report released on Oct. 30.
The region has emerged as the fourth-largest cryptocurrency market globally, with its $499 billion in transactions representing over 11% of the total crypto value received worldwide. This growth indicates a rising trend of retail cryptocurrency adoption in Eastern Europe, which could bring fresh capital into the crypto space.
While DeFi activity is on the rise, centralized cryptocurrency exchanges (CEXs) continue to be the primary beneficiaries, receiving over $324 billion of digital asset transactions within the region.
Russia and Ukraine lead the way in crypto transaction value within Eastern Europe, with Russia receiving over $182 billion and Ukraine over $106 billion worth of cryptocurrency flows. Despite geopolitical tensions and international sanctions, crypto adoption remains strong in both countries.
In Ukraine specifically, institutional and professional transfers have been driving market growth, with large institutional transfers exceeding $10 million and mid-sized transfers ranging from $1 million to $10 million constituting the bulk of transactions in 2024.
Given the economic challenges faced by Ukraine, such as high inflation rates, Ukrainians may be turning to Bitcoin as an alternative store of value, as reflected in the significant growth of Bitcoin purchases using the Ukrainian hryvnia, amounting to over $882 million.
The active presence of local CEXs in Eastern Europe, including exchanges like WhiteBIT in Ukraine, underscores the region’s commitment to cryptocurrency adoption and financial innovation in the face of adversities.
Despite the ongoing war and economic instabilities, the Eastern European crypto market continues to thrive, driven by a diverse range of transactions and a growing interest in DeFi solutions. With DeFi leading the charge, Eastern Europe is poised to play an increasingly prominent role in the global cryptocurrency ecosystem.
