Order

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      <p class="whitespace-pre-wrap break-words"><strong>Chainalysis’s latest report reveals Eastern Europe as the fourth largest cryptocurrency market globally.</strong></p> 
      <p class="whitespace-pre-wrap break-words">As per the <a href="https://www.chainalysis.com/blog/2024-eastern-europe-crypto-adoption/" target="_blank" rel="noopener nofollow">report</a>, the region received $499.14 billion in on-chain value between July 2023 and June 2024.</p> 
      <p class="whitespace-pre-wrap break-words">Eastern Europe also accounted for 11% of total global crypto transactions. Interestingly, centralized exchanges (CEXs) dominated the market at nearly $324 billion. At the same time, DeFi activity grew to $165.46 billion.</p> 
      <h3 class="font-600 text-xl font-bold" id="ukraine-and-russia-came-out-as-regional-leaders">Ukraine and Russia came out as regional leaders</h3> 
      <p class="whitespace-pre-wrap break-words">Ukraine and Russia maintained strong positions in the global crypto adoption index, ranking 6th and 7th, respectively.</p> 
      <p class="whitespace-pre-wrap break-words">Russia advanced six places from the previous year and is leading Eastern Europe with $182.44 billion in crypto inflows.</p> 
      <p class="whitespace-pre-wrap break-words">Ukraine followed with $106.1 billion in transactions. WhiteBIT, a crypto exchange with Ukrainian roots now headquartered in Lithuania, provided insights to Chainalysis.</p> 
      <p></p>
      <figure style="width: 100%" class="wp-caption alignnone">
       <img loading="lazy" decoding="async" src="https://www.chainalysis.com/wp-content/uploads/2024/10/eastern-europe-countries-by-cryptocurrency-value-received.png" alt="Eastern Europe Countries by cryptocurrency value received" width="1920" height="1248">
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        <em>Source: <a href="https://www.chainalysis.com/blog/2024-eastern-europe-crypto-adoption/" target="_blank" rel="noopener nofollow">Chainalysis</a></em>
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      <p></p> 
      <p class="whitespace-pre-wrap break-words">Despite the war, WhiteBIT maintains a strong regional presence alongside other CEXes. However, some have relocated operations to other Eastern European countries due to security concerns.</p> 
      <p class="whitespace-pre-wrap break-words">The organization noted that <em>“institutional and professional crypto transfers in Ukraine have surged as many seek financial stability amid the ongoing war, with cryptocurrencies viewed as a safer alternative.”</em></p> 
      <h3 class="font-600 text-xl font-bold" id="bitcoin-purchases-using-ukrainian-hryvnia-totaled-882-6-million">Bitcoin purchases using Ukrainian hryvnia totaled $882.6 million</h3> 
      <p class="whitespace-pre-wrap break-words">Order book data analysis revealed major growth in Bitcoin (BTC) purchases using the Ukrainian hryvnia (UAH), totaling $882.64 billion.</p> 
      <p class="whitespace-pre-wrap break-words">This surge followed the UAH inflation peak of 26.6% in December 2022, with a subsequent decline in Q1 2023.</p> 
      <p class="whitespace-pre-wrap break-words">Consumer purchasing behavior typically lagging behind economic trends suggests Ukrainians pursued BTC as an alternative store of value.</p> 
      <p class="whitespace-pre-wrap break-words">Eastern Europe’s DeFi sector showed great development, placing third globally in year-over-year growth behind Latin America and Sub-Saharan Africa.</p> 
      <p class="whitespace-pre-wrap break-words">DeFi activity accounted for over 33% of total crypto received in the region. Decentralized exchanges (DEXs) dominated the sector, receiving $148.68 billion in crypto.</p> 
      <p class="whitespace-pre-wrap break-words">As per the report, Ukraine and Russia experienced growth of 160.23% and 173.88%, respectively. Ukrainian DEXs processed $34.9 billion, while Russian DEXs handled $58.4 billion.</p> 
      <p class="whitespace-pre-wrap break-words">Moldova, Hungary, and Czechia saw notable growth in DeFi lending services, which received $11.29 billion in crypto.</p> 
      <p class="whitespace-pre-wrap break-words">Countries like Hungary and Moldova experienced explosive growth in bridges and lending. As per the data, their total volume remained relatively small compared to regional leaders.</p> 
      <p class="whitespace-pre-wrap break-words">For instance, Hungary’s nearly 600% increase in bridge transactions amounted to $151 million, compared to Ukraine’s $897 million.</p> 
      <p class="whitespace-pre-wrap break-words">Transaction size analysis revealed changing trends. Ukraine experienced a 361.49% increase in large institutional transactions (over $10M), while also seeing substantial growth in retail transactions.</p> 
      <p class="whitespace-pre-wrap break-words">Large retail transactions ($1K-$10K) increased by 82.29%, and small retail transactions (under $1K) grew by 91.99%. Similar institutional growth patterns were observed in Russia, Belarus, Poland, and Slovakia.</p> 
      <h3 class="font-600 text-xl font-bold" id="eastern-europe-and-mica-rules">Eastern Europe and MiCA rules</h3> 
      <p class="whitespace-pre-wrap break-words">The EU’s Markets in Crypto-Assets Regulation (MiCA) implementation began in summer 2024. Also, the stablecoin regime is starting June 30, 2024.</p> 
      <p class="whitespace-pre-wrap break-words">Full application to all crypto-asset service providers is scheduled for December 30, 2024. Ukraine is also actively working towards adopting these standards.</p> 
      <p class="whitespace-pre-wrap break-words"><em>“Embracing blockchain technology and integrating crypto-assets into a regulatory framework could be a major step forward for Ukraine’s efforts to support its economy, particularly during the ongoing war with Russia,”</em> said Oleksandr Bornyakov, Deputy Minister of Digital Transformation of Ukraine.</p> 
      <p class="whitespace-pre-wrap break-words">He noted that a regulated crypto economy could generate tax revenue, attract talent, and position Ukraine competitively in the global digital economy.</p> 
      <p class="whitespace-pre-wrap break-words">Russia’s approach differs, with the government passing legislation in September to legalize crypto mining and international payments. This was following a years-long ban.</p> 
      <p class="whitespace-pre-wrap break-words">This move aims to reduce U.S. dollar dependence amid Western sanctions imposed after its invasion of Ukraine.</p> 
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$499 billion in crypto received by Eastern Europe, CEX dominates with $324B: Chainalysis

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