In Eastern Europe, interest in cryptocurrency is rising significantly, making the region the fourth-largest crypto market in the world, accounting for over 11% of global crypto value. Driven by innovations in decentralized finance (DeFi), DeFi now represents one-third of all crypto transactions in the region.

DeFi share grows to 33% of all crypto in Eastern Europe

From July 2023 to June 2024, Eastern Europe received more than $499 billion in crypto transactions. DeFi plays a large role here, with an impressive $165 billion in value flowing through decentralized platforms. This growth reflects increasing cryptocurrency adoption among individuals and institutions, which may contribute to a greater capital flow within the crypto sector.

Centralized exchanges remain popular despite DeFi growth

Despite the rise in DeFi activities, centralized exchanges, or CEXs, remain the most popular in Eastern Europe. These platforms received over $324 billion in digital transactions, underscoring their role as accessible and secure exchange venues for many users.

Russia and Ukraine as leaders in crypto transactions

Within Eastern Europe, Russia and Ukraine lead in crypto transaction volumes. Russia received more than $182 billion, while Ukraine ranks second with over $106 billion. In Ukraine, the market is largely driven by institutional and professional transfers, with transactions of millions of dollars representing the majority of value. This trend highlights crypto‘s appeal as an alternative for stability in times of economic uncertainty.

Bitcoin popular as an alternative amid rising inflation

Although the conflict in Ukraine persists, local crypto exchanges remain active, offering residents a safe option for financial transactions. This partly explains the increase in Bitcoin purchases with the Ukrainian hryvnia. As inflation rose, Ukrainians viewed crypto as a potentially reliable alternative for value storage, with Bitcoin being a popular choice.

Eastern Europe strengthens its position in the global crypto market

With the growth of crypto adoption in Eastern Europe and the increase in both DeFi and institutional investments, the region has emerged as a key player in the international crypto market.