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Source: Chainalysis; Compilation: White Water, Bit Chain Vision Realm
As the fourth largest cryptocurrency market, Eastern Europe obtained a chain value of $ 499.14 billion from July 2023 to June 2024, accounting for 11%of the total global cryptocurrency share.The number of cryptocurrencies received by the Central Exchange (CEX) is the largest in the region, reaching nearly 324 billion U.S. dollars, and the Defi event has increased significantly in the past year, receiving a $ 165.46 billion cryptocurrencies, which accounts for the influx of the area in the region.one third.
Among the global cryptocurrencies adoption of this year, regional leaders Ukraine and Russia ranked sixth and seventh respectively, of which Russia ranked six more than last year.Considering the continuous war and the continuously strengthening international sanctions system for Russia, the booming of the cryptocurrency market of the two countries has become fascinating. Russia has become a leader in Eastern Europe with the inflow of cryptocurrency of $ 182.44 billion, as shown below.Ukraine followed closely and received $ 106.1 billion in cryptocurrencies.
In Ukraine, institutions and professional transfer have promoted a large part of the growth of the cryptocurrency market. Considering that the country’s changing regulatory situation is a notable development.
To understand the perspective of this trend, we interviewed Whitebit, a cryptocurrency exchange derived from Ukraine. It is currently headquartered in Lithuania and has a total of 8 offices worldwide.Despite the war, Whitebit, like other CEX, has maintained a strong influence in the region, although some of them may have transferred business to other Eastern European countries for security considerations.
The organization said: “Ukraine’s institutions and professional cryptocurrencies have increased, because many people seeks financial stability in continuous war, and cryptocurrencies are considered a safer choice.” “This trend has been fluctuated by market, inflation, and inflation, andThe influence of global factors such as war -related sanctions, as well as companies such as Berlaide and other companies in Bitcoin ETF’s institution is increasingly stronger. “
The purchase volume of Bitcoin using Ukraine Grevener increases
The review of order book data (list of assets or securities buying and selling orders) shows that Bitcoin (BTC) purchased by Uahn Greene (BTC) has increased in the past year, totaling $ 88,264.4 million.
Prior to this, the inflation rate in Ukraine Greffner reached a peak of 26.6% in December 2022, and it fell steadily in the first quarter of 2023.Because consumers’ purchase behavior is usually lagging behind economic trends, Ukraines may have been pursuing Bitcoin as an alternative value storage method for Bitcoin as Ukraine.
Whitebit said: “In the case of uncertainty, Bitcoin is regarded as a safer long -term investment compared to the fluctuating domestic currency.”Individual investors are more attractive, and they seek stability and long -term value preservation when they continue to war and economic instability.
Russian local service is becoming more and more popular
Russia continues to receive a large number of cryptocurrencies from its abroad sources.Last year, we reported the growth of Russian local services, and this trend remained stable this year.Russia’s local service growth index (below) has inspected the average share of Russian service in the past two years (defined as a share of more than 50%).Although the access volume of the CEX website has remained relatively stable, the number of access to the Russian KYC trading website has increased, and it has reached its peak in the middle of last year. It is currently stable.This may be partly due to extensive sanctions on major Russian financial institutions, which prompts Russian citizens to use these types of services more widely. They can enter and exit farewell currencies between sanctioned Russian banks to cryptocurrencies.
Aside from reality, let’s discuss a potential and positive growth indicator in Eastern Europe: a significant increase in Defi activities.
Eastern Europe DEFI activities increased by nearly 40% year -on -year
Last year, Defi activities accounted for more than 33% of the total cryptocurrency received by Eastern Europe.From the perspective of Global Defi, Eastern Europe ranked third in the world and lags behind Latin America and southern Sahara Africa.
In Eastern Europe, the volume of cryptocurrencies in decentralized exchanges (DEX) increased the fastest, especially in Ukraine, Russia, Poland and Belarus.Throughout the region, DEX received $ 148.68 billion in cryptocurrencies.Cryptocurrencies sent to Ukraine and Russia’s DEX increased by 160.23% and 173.88%, respectively, of which Ukraine DEX received US $ 34.9 billion and Russia DEX received $ 58.4 billion.Defi borrowing services in several countries such as Moldova, Hungary and Czech Republic have also increased, and have obtained $ 11.29 billion in cryptocurrencies.
Although the bridge and borrowing of countries such as Hungary and Moldova have experienced explosive growth, in view of the relatively small markets, the flow of cryptocurrencies in these categories only accounts for a small part of the region’s total DEFI.For example, Hungary’s cryptocurrency sent by the bridge has increased by nearly 600%to $ 151 million.Although this number is not insignificant, the inflow of Hungarian bridge receipt funds in comparison with Ukraine’s US $ 897 million can include this number into the regional background.The growth of NFT in some countries has also surged, but only $ 6.9 million.
Token smart contracts (that is, the use of ERC-20 tokes and popular stablecoins, such as USDT and USDC) are not included in the figure above, because all Eastern European countries have experienced significant declines in this category, reflecting the regional decline and stabilityNumber of coins.Most stable coins in other regions continue to grow, and Whitebit believes that regulatory uncertainty and geopolitical tensions may lead to Eastern Europe’s abandonment of stable coins.
Regarding the decline in Ukraine’s stablecoin usage, Anna Tutova, CEO of CEINSTELEGRAM, CEO of the Crypto News Media Group and Public Relations Consulting Agency.”Many people in Ukraine buy cryptocurrencies for investment purposes, so this may be the reason for the reduction of stable coins. At the same time, many people in Ukraine will use stable coins for P2P transactions as currencies, payment methods and cross -border transfer transfers.Simple tools, they may not use it for investment. In countries where currency fluctuations, stable currency is usually used as a way to store value storage, or as a way of financial tolerance for non -bank accounts.The country is not necessary, because most people have bank accounts and local currencies are more or less stable.Before the United States, in December 2023, Ukraine had restricted to purchase foreign currency, but began to collect in December 2023.
Ukraine and Russian institutions and grassroots cryptocurrencies have been popularized
The scale of Defi transactions in the past year has revealed two main trends, especially in leading countries such as Ukraine and Russia.Ukraine’s large institutional transactions (that is, more than 10 million US dollars) increased by 361.49%, which promoted the growth of the country’s DEFI.Similarly, Russia, Belarus, Poland, and Slovakia have Defi as fast as possible, and the institutional transfer scale is large.
In contrast, Ukraine’s large retail transactions (between 1,000 and US $ 10,000) and small retail transactions (less than 1,000 US dollars) increased significantly, an increase of 82.29%and 91.99%, respectively.Small retail transactions usually indicate that grass roots are adopted. Considering the geopolitical instability of the region and the recent recovery of Ukraine from inflation, these small transactions may indicate that investors use cryptocurrencies to enhance their daily purchasing power.
This situation on DEFI proposed another consideration: although the increase in Defi activities usually indicates that the cryptocurrency market is mature, but investors may also turn to DEFI because it provides greater convenience and speed in the transaction.And the control of assets.When cryptocurrency users are facing supervision uncertainty, they may choose the path with the smallest resistance.
The future of Eastern Europe cryptocurrency
Last summer, the European Union began to launch the crypto asset market supervision (MICA), and began to apply its so -called stable currency system on June 30, 2024.On December 30, 2024, Mica will be fully applicable to all cryptocurrencies-asset service providers operating in the European Union.All signs show that, given that Ukraine is a candidate for EU member states, it is working to adopt the MICA standard.
Oleksandr Bornyakov, deputy minister of digital transformation in Ukraine’s IT industry, said: “The use of blockchain technology and incorporating encrypted assets into the regulatory framework may be an important step in Ukraine’s support for the economy, especially during the war with Russia.”The economy can bring taxes to the government, attract and retain start -up talents, and make the country a competitive participant in the global digital economy.And incorporate the legal framework to enhance the legitimacy and trust of this emerging market. “
In response to Western sanctions and concerns about trade difficulties with China, after a year of cryptocurrency ban, the Russian government passed legislation in September to legalize cryptocurrencies and allows the use of cryptocurrencies for useInternational payment.Russian central bank officials and Russian legislators have clearly stated that they have strongly hope to reduce their dependence on the US dollar to reduce the impact of sanctions committed due to invasion of Ukraine.
Whitebit said so about the future of cryptocurrencies in Eastern Europe.”In view of the rapid development of blockchain technology and the increasing attention to the regulatory framework, we believe that the encryption industry has huge growth potential. As part of the global market, Eastern Europe is becoming a key area for blockchain. This is a full of opportunitiesTimes, accepting new regulations and technological progress can become a catalyst for the development of digital assets throughout the region. “
A regulatory agency in Ukraine also holds the same optimism.Yurii Boiko, member of the National Securities and Stock Committee of Ukraine, said: “From the perspective of the broad prospects of digital assets in Eastern Europe, we believe that Ukraine has the potential to become a key participant in considering the high adoption rate and interest of cryptocurrencies.” Marketing Committee.”We have millions of people with high levels of IT literacy, the expanding national digitalization, strong technical ecosystem and innovative driving force. Combined with the favorable regulatory environment we are actively building, this will make Ukraine a digital asset development in Eastern European region.And the future promoter of implementation. “
We will continue to monitor the trend to see how Mica and other regulatory work affect the adoption of Eastern European cryptocurrencies in the coming year.
