Eastern Europe processes $500B in crypto payments over the year
Eastern Europe processes $500B in crypto payments over the year
Eastern Europe, the fourth largest cryptocurrency market globally, processed $499.14 billion in crypto payments between July 2023 and June 2024, representing 11% of all crypto blockchain transactions worldwide.
This finding comes from a new study by analytics firm Chainalysis.
According to the report, $324 billion in cryptocurrency flowed through centralized exchanges in the region, while DeFi sector activity grew to $165.46 billion during the same period. Meanwhile, decentralized exchanges in Eastern Europe handled $148.68 billion in crypto transactions over the past year. DeFi transactions have been expanding due to two key trends: increasing large-scale institutional and retail transactions. However, stablecoins are not as popular, as residents of these countries view cryptocurrencies primarily as investment assets.
Why Crypto is Gaining Popularity in Eastern Europe
The popularity of cryptocurrencies in Eastern Europe is driven by a mix of economic and technological factors that make digital assets appealing to investors and everyday users. Firstly, the instability of fiat currencies and inflation motivate people to seek alternative tools for savings and investments. Bitcoin and other cryptocurrencies are seen by many as a hedge against devaluation, allowing users to transfer and hold assets outside the traditional banking system.
Technology also plays a crucial role, as decentralized finance (DeFi) is growing in the region, giving users the ability to engage in financial transactions directly, without bank intermediaries.
According to another Chainalysis study, the U.S. lags in stablecoin adoption despite rising global demand for these digital assets.
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