DeFi drives 33% of transactions
Decentralized financial activity is increasing in Eastern Europe, showing continued cryptocurrency adoption, according to onchain analytics platform Chainalysis.
Between July 2023 and June 2024, Eastern Europe acquired more than $499 billion worth of cryptocurrency.
The decentralized finance (DeFi) movement accounts for one-third of the region's crypto value flow, totaling more than $165 billion, according to an Oct. 30 Chainalysis crypto adoption report.
Total value received by region by service type. Source: Chain analysis
The Eastern European region has grown to become the fourth largest cryptocurrency market in the world. The region's $499 billion accounts for more than 11% of the total value of crypto received worldwide.
According to the report, retail trading in Eastern Europe could bring new capital into the crypto space.
Crypto value has been accepted in Eastern Europe along with the world. Source: Chain analysis
Still, despite the growing DeFi movement, centralized cryptocurrency exchanges (CEXs) remain the main users, receiving more than $324 billion of those digital asset transactions.
Related: Bitcoin at 16: From Trial to Trillion-Dollar Asset
Institutional transfers fuel crypto growth in Ukraine
In Eastern Europe, Russia and Ukraine lead by crypto trading value. The report notes that the adoption of crypto remains “impressive” in both countries, despite the war and international sanctions against Russia.
Eastern Europe: Countries embrace the value of cryptocurrency.
Russia received more than $182 billion worth of crypto flows, while Ukraine recorded more than $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 over $10 million and medium-sized institutional transfers between $1 million and $10 million will account for the majority of transactions in 2024.
Index: Crypto growth in Ukraine by type of transaction
Related: Asia takes top spot for crypto developers; America refused.
Despite the ongoing war, local CEXs remain active in the region. For example, Whitebit maintains a strong presence in Ukraine along with other exchanges. A Whitby spokesperson told Chinalysis:
Institutional and professional crypto exchanges are on the rise in Ukraine. Demand for Bitcoin ETFs from companies like BlackRock.
Cryptocurrencies purchased with hryvnias on order books. Source: Change
Looking at order book data, Bitcoin (BTC) purchases using the Ukrainian hryvnia have grown significantly over the past year, exceeding $882 million.
The surge in Bitcoin transactions comes after the hryvnia experienced inflation of more than 26 percent in December 2022, which has slowed in early 2024.
According to a Chinalysis report, Ukrainians may use Bitcoin as an alternative store of value.
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