Amid geopolitical turmoil and economic sanctions in Eastern Europe, DeFi activity in Ukraine and Russia has unexpectedly flourished!
According to a new report from Chainalysis, the two countries have seen significant growth in cryptocurrency usage and DeFi activity, especially in the face of the challenges of war and international sanctions.
In addition, Russia's ranking soared 6 places from last year, despite the increasingly severe international sanctions it faces. Among them, Eastern Europe led Russia with $182.44 billion in cryptocurrency inflows, followed by Ukraine with $106.1 billion in inflows.
DeFi shows significant growth in Ukraine and Russia
Reports show that Eastern Europe, especially Ukraine and Russia, has seen significant growth in cryptocurrency trading volumes on decentralized exchanges (DEXs). DEX platforms across the region have received a total of approximately $149 billion in cryptocurrencies, with inflows to Ukraine growing by more than 160% to $34.9 billion, and Russia seeing a 173% increase to $58.4 billion.
Over the past year, Ukraine’s large institutional transaction volume (transactions over $10 million) has increased by 361.49%, while large-scale institutional transfers in Russia and other Eastern European countries have also driven significant growth in DeFi.
Furthermore, in Ukraine, not only did large-value transactions surge by 82.29%, but small retail transactions also surged by 91.99%, which may reflect that people are increasingly relying on cryptocurrencies to meet their daily expenses in the face of geopolitical turmoil and inflation issues.
In Russia, due to bank sanctions, local cryptocurrency services are becoming more and more popular, especially those platforms that do not require KYC procedures. The activity of these platforms has remained stable after reaching a peak last year, showing that Russians are increasingly keen to convert traditional currencies into cryptocurrencies through these platforms.
However, this also creates an interesting phenomenon, that is, cryptocurrency has become an emerging, decentralized solution under the constraints of the traditional financial system.
🗣️ Conclusion:
These developments remind us that cryptocurrency is more than just an investment vehicle; it is a force that can provide stability and opportunity during times of global economic turmoil.
As technology continues to advance and the regulatory environment adapts, we have reason to believe that cryptocurrencies will play a more important role in the future global economy.
💬 What do you think? Do you think this trend will continue? Or do you have a different opinion? Looking forward to seeing your comments in the comment section!