$182B in crypto flows into Russia as DeFi grows in Eastern Europe

A recent Chainalysis report reveals that Ukraine and Russia are playing significant roles in the global crypto economy, with notable growth in decentralized finance (DeFi) activity. 

Ukraine and Russia now rank 6th and 7th, respectively, on the 2024 Global Crypto Adoption Index. 

Russia surged six spots from last year’s ranking, despite ongoing sanctions and the war, with Eastern Europe leading in crypto inflows, including $182.44 billion into Russia and $106.1 billion into Ukraine.

Decentralized exchanges (DEXes) across Eastern Europe have seen substantial inflows, driven largely by activity in Russia and Ukraine. 

Chainalysis reported that the regionwide total for DEX platforms reached $149 billion, with Ukraine’s DEX inflows increasing by over 160%, hitting $34.9 billion, and Russia’s rising by 173%, totaling $58.4 billion. 

DeFi lending services in Moldova, Hungary, and Czechia also saw growth, accumulating $11.29 billion in digital assets.

Large institutional transactions—those exceeding $10 million—played a significant role in Ukraine’s DeFi activity, increasing by 361.49% over the past year. 

Ukraine also saw growth in smaller retail transactions, which surged by 82.29% for large retail and 91.99% for small retail, reflecting increased grassroots adoption, likely influenced by geopolitical challenges and inflation recovery.

In Russia, the report highlighted a rise in the use of no-KYC (know-your-customer) platforms. 

As traditional banking services faced sanctions, Russian users turned to these crypto exchanges to convert fiat into digital assets. 

While web traffic to centralized exchanges remained flat, Russian-language no-KYC exchanges experienced a spike in activity last year, which has since stabilized.