- Blockchain analysis firm Chainalysis released a report discussing crypto adoption in Eastern Europe after the Russia-Ukraine war.
- The report stated that global crypto usage has fallen by 22% in the last year.
- Ukraine and Russia lost $35.8 billion and $41 billion, respectively, in crypto transaction volume.
Blockchain analysis firm Chainalysis recently published a crypto adoption report in Eastern Europe discussing the rise in transaction activity despite the Russia-Ukraine war. The publication highlighted that Eastern Europe ranks fourth-largest, having accumulated $445 billion in on-chain value from July 2022 to June 2023, representing 8.9% of the global transaction activity.
According to the article, raw transaction volume declined by 22% over the past year, mirroring the global downturn during the same period. Additionally, Eastern Europe continues to grapple with the economic repercussions of the Russia-Ukraine War.
The region, which was earlier home to institutional-sized transfers, now witnesses stability in smaller institutional and retail transactions, according to the report. The shift could suggest that major crypto players have reduced their involvement during a crypto downturn, but other participants remain engaged. Simultaneously, DeFi activity has increased to 3%, reportedly influenced by regulatory uncertainty and market disruptions.
Moreover, the war triggered a year-over-year decline in transaction volume in both nations, with Ukraine’s at $35.8 billion and Russia’s at $41 billion. Grassroots adoption in both countries also decreased, causing them to slide two and four positions, respectively, on Chainalysis’ Global Crypto Adoption Index.
Meanwhile, Russian usage of major international exchanges plummeted by over 50%, likely due to restrictions placed on Russian users and banks in response to the war, according to the report. In July 2023, Russia announced it was making significant progress in launching its central bank digital currency (CBDC), known as the Digital Ruble.
The report mentioned that the decline in crypto volumes in Ukraine is a result of economic challenges stemming from the war. The report mentioned Ukrainian crypto business Kuna, which relocated its headquarters to Lithuania and shifted its focus to the European market. The company has introduced Kuna Pay, a B2B crypto payment solution with on and off-ramps, and is working on staking products and crypto custody solutions for Ukrainian banks, subject to regulatory approval.
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