Chainalysis: Ukraine, Russia lead in crypto adoption at all levels

Eastern Europe is witnessing a surge in cryptocurrency usage, driven by both institutional and grassroots engagement in Ukraine and Russia, particularly amid regional instability.

A report from Chainalysis highlights that crypto adoption is rapidly accelerating across Eastern Europe, with significant involvement from both institutions and local communities in Ukraine and Russia.

Over the past year, Ukraine experienced an impressive 362% increase in large institutional decentralized finance transactions (exceeding $10 million), which has been a major factor in its decentralized finance growth. Similarly, in Russia, along with Belarus, Poland, and Slovakia, large institutional transfers have also contributed to the expansion of decentralized finance.

Retail cryptocurrency activity is also increasing in Ukraine, with small and large retail transactions rising by 82.2% and nearly 92%, respectively. Chainalysis notes that smaller transactions often indicate “grassroots adoption.” Given the region’s geopolitical instability and Ukraine’s recent recovery from inflation, these smaller transactions may reflect investors using crypto to enhance their everyday purchasing power.

Decentralized Finance Booms in Eastern Europe

Data from Chainalysis reveals that decentralized exchanges (DEXes) in Eastern Europe experienced significant growth in crypto inflows, receiving a total of $148.6 billion across the region.

Specifically, crypto sent to DEXes in Ukraine and Russia surged by 160.2% and 173.8%, respectively, with Ukrainian DEXes receiving $34.9 billion and Russian DEXes receiving $58.4 billion.

Chainalysis analysts pointed out that in 2023, decentralized finance represented over 33% of all crypto activity in Eastern Europe. The region ranks third globally in year-over-year decentralized finance growth, following Latin America and Sub-Saharan Africa, particularly in areas where regulatory conditions are still uncertain.