Chainalysis Ukraine and Russia Dominate Crypto Adoption Across All Levels
Crypto usage in Eastern Europe is experiencing significant growth, driven by both institutional and grassroots adoption in countries like Ukraine and Russia. According to a report by Chainalysis, Ukraine saw a staggering 362% increase in large institutional decentralized finance transactions (over $10 million) in the past year, contributing to its overall decentralized finance growth. Similarly, Russia, Belarus, Poland, and Slovakia also witnessed decentralized finance expansion fueled by large institutional transfers.
Chainalysis data also revealed a rise in retail crypto activity in Ukraine, with small and large retail transactions increasing by 82.2% and nearly 92% respectively. These smaller transactions are seen as a sign of grassroots adoption and may indicate investors using crypto to protect their purchasing power in the face of regional instability and Ukraine’s recent recovery from inflation.
Furthermore, decentralized exchanges in Eastern Europe experienced the largest increase in crypto inflows, receiving a total of $148.6 billion in crypto. Chainalysis analysts noted that decentralized finance accounted for over 33% of all crypto activity in Eastern Europe in 2023. Globally, Eastern Europe ranks third in year-over-year decentralized finance growth, trailing behind Latin America and Sub-Saharan Africa, especially in regions where regulatory conditions are uncertain.
Overall, the crypto landscape in Eastern Europe is evolving rapidly, with Ukraine and Russia leading the way in institutional and grassroots adoption, fueled by large transactions and retail use amidst regional instability.
