According to Chainalytic, an on-chain analytics platform, decentralized finance-related activity is increasing in Eastern Europe and cryptocurrency adoption continues to occur.
Eastern Europe received $499 billion worth of cryptocurrency between July 2023 and June 2024.
Decentralized finance (DeFi) activity accounted for a third of the region’s cryptocurrency value flows, totaling more than $165 billion, according to the October 30 Chainalytic Crypto Adoption Report.
Total value received by region by service type. Source: Chainalysis
Eastern Europe has grown into the fourth largest cryptocurrency market in the world. The region’s $499 billion accounted for more than 11% of the total cryptocurrency value received globally.
The report suggests that increased retail adoption of cryptocurrencies across Eastern Europe could bring new capital into the cryptocurrency space.
Cryptocurrency value received in Eastern Europe and the world. Source: Chainalysis
However, despite the increase in DeFi activity, centralized cryptocurrency exchanges (CEXs) remain the main beneficiaries, receiving over $324 billion in digital asset transactions.
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Institutional transfer boosts Ukrainian cryptocurrency growth
Within Eastern Europe, Russia and Ukraine lead in cryptocurrency trading value. The report noted that despite the ongoing war and international sanctions against Russia, cryptocurrency adoption in both countries remains “remarkable.”
Eastern Europe: Countries by Cryptocurrency Value Received
Russia received over $182 billion in cryptocurrency flows, while Ukraine came in second in the region with over $106 billion.
In Ukraine, institutional and professional movements have driven a significant portion of the market growth. According to Chainalysis, the majority of transactions in 2024 were large institutional transfers worth more than $10 million and medium-sized institutional transfers worth $1 million to $10 million.
Index: Cryptocurrency Growth in Ukraine by Transaction Type
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Despite the ongoing war, local CEX continues to operate in the region. For example, WhiteBIT maintains a strong presence in Ukraine along with other exchanges. A WhiteBIT spokesperson told Chainalytic:
“Institutional and professional cryptocurrency transfers from Ukraine have surged as many people see cryptocurrencies as a safer alternative as they seek financial stability amid the ongoing war… These trends are influenced by global factors such as market volatility, inflation and war-related sanctions. I am interested in Bitcoin ETFs from companies like BlackRock.”
This is a cryptocurrency purchased with the hryvnia shown in the order form. Source: Chan Analysis
Looking at order book data, Bitcoin (BTC) purchases using Ukrainian hryvnia have grown significantly over the past year, exceeding $882 million.
The increase in Bitcoin transactions comes after the hryvnia experienced inflation of more than 26% in December 2022, before slowing until early 2024.
According to a Chainalysis report, Ukrainians are likely to use Bitcoin as a store of value.
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