The growth of cryptocurrency adoption in Europe is a notable trend, as revealed by excerpts from Chainalysis’s forthcoming 2023 Geography of Cryptocurrency Report.
Cryptocurrency Adoption in Europe: A Leading Trend
The upcoming Chainalysis report highlights that European countries are at the forefront of cryptocurrency adoption, with both individual users and institutional players embracing the digital asset space.
Chainalysis classifies Central, Northern, and Western Europe (CNWE) as the second-largest global cryptocurrency economy in 2023. In contrast, Eastern Europe ranks as the fourth-largest crypto market, having received $445 billion in on-chain value between July 2022 and June 2023.
Grassroots Crypto Adoption in Eastern Europe
One excerpt from the report underscores the advancement of grassroots cryptocurrency adoption in Eastern Europe, even amidst the ongoing Russia-Ukraine conflict.
Ukraine and Russia are the regional leaders in crypto usage, excelling in both grassroots adoption and raw transaction volume.
According to Anna Voievodina, Chief Legal Counsel of Kuna Exchange, Ukrainians are increasingly interested in crypto and are exploring its potential to navigate domestic challenges.
“As the Ukrainian economy faces challenges and towns are being devastated, people are seeking new financial options they hadn’t considered before. They are exploring new avenues and are less hesitant about KYC requirements,” Voievodina stated.
Ukrainians are adopting cryptocurrencies for everyday uses like remittances, donations, and savings.
Institutional Embrace of DeFi in CNWE
In another excerpt, Chainalysis highlights the popularity of decentralized finance (DeFi) in Central, Northern, and Western Europe (CNWE). DeFi accounts for 54.8% of cryptocurrency value received across the region between July 2022 and June 2023.
While retail consumers play a significant role in this DeFi activity, the report commends institutions in the region for embracing DeFi, thanks to supportive regulatory frameworks that facilitate various Web3 initiatives.