Decentralized finance-related activity is increasing in Eastern Europe, showcasing continued cryptocurrency adoption, according to the onchain analytics platform Chainalysis.
Eastern Europe received over $499 billion worth of cryptocurrency between July 2023 and June 2024.
Decentralized finance (DeFi) activity accounted for a third of the region’s crypto value flow, totaling more than $165 billion, according to the Oct. 30 Chainalysis crypto adoption report.
Total value received by region by type of service. Source: Chainalysis
The Eastern European region has grown to become the fourth-largest cryptocurrency market in the world. The region’s $499 billion accounted for more than 11% of the total crypto value received worldwide.
The report suggests that increased retail adoption of cryptocurrencies across Eastern Europe may bring new capital into the crypto space.
Crypto value received in Eastern Europe vs. the world. Source: Chainalysis
Still, despite growing DeFi activity, centralized cryptocurrency exchanges (CEXs) remain the main beneficiaries, receiving over $324 billion of those digital asset transactions.
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Institutional transfers fuel crypto growth in Ukraine
Within Eastern Europe, Russia and Ukraine lead in crypto transaction value. The report notes that crypto adoption remains “remarkable” in both countries despite their ongoing war and international sanctions against Russia.
Eastern Europe: Countries by cryptocurrency value received. Source: Chainalysis
Russia received over $182 billion worth of crypto flows, while Ukraine recorded over $106 billion, second in the region.
In Ukraine, institutional and professional transfers have driven much of the market’s growth. According to Chainalysis, large institutional transfers of over $10 million and mid-sized institutional transfers from $1 million to $10 million accounted for most of the transactions in 2024.
Index: Crypto growth in Ukraine by transaction type. Source: Chainalysis
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Despite the ongoing war, local CEXs remain active in the region. For instance, WhiteBIT maintains a strong presence in Ukraine along with other exchanges. A WhiteBIT spokesperson 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… This trend is influenced by global factors like market volatility, inflation, and war-related sanctions, alongside growing institutional interest in Bitcoin ETFs from firms such as BlackRock.”
Cryptocurrencies purchased with hryvnias on order books. Source: Chainalysis
Looking at order book data, Bitcoin (BTC) purchases using the Ukrainian hryvnia saw significant growth over the past year, surpassing $882 million.
The increase in Bitcoin transactions came after the hryvnia experienced over 26% inflation in December 2022, which then slowed by early 2024.
The Chainalysis report suggests that Ukrainians may be using Bitcoin as an alternative store of value.
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