Russia has taken the lead in European cryptocurrency adoption, according to a recent report by Chainalysis. The report highlights substantial growth and resilience in the European crypto market over the past two years, with Russia emerging as the dominant force.
Between July 2024 and June 2025, Russia's crypto market received $376.3 billion, surpassing the United Kingdom, which received $273.2 billion during the same period. Germany ($219.4 billion), Ukraine ($206.3 billion) and France ($180.1 billion) rounded out the top five. This considerable lead signifies a notable shift in the European crypto landscape. The increase is partially attributed to an 86% year-over-year surge in large institutional transfers exceeding $10 million. This is almost twice the European average.
Several factors contribute to Russia's high ranking in crypto adoption. One significant driver is the increasing use of crypto in decentralized finance (DeFi). In early 2025, DeFi activity in Russia jumped nearly eightfold compared to mid-2023, although it has since corrected but remains above initial levels. This rapid expansion, combined with the increase in large-value transfers, suggests a growing acceptance of crypto for financial services.
Chainalysis data indicates that other segments of Russia's crypto ecosystem, including small retail investors, have shown growth rates moderately ahead of European averages. A high awareness of digital currencies among young, digitally savvy investors also fuels adoption. By late 2024, approximately 66% of Russians had some knowledge of crypto, with about 21% of adults having tried it at least once.
Despite stringent sanctions, Russia has become a major crypto market. While domestic crypto payments remain banned, the Russian parliament approved a law in July 2024 allowing the use of crypto in international trade to bypass sanctions. This has created an experimental payment system for exporters.
Furthermore, the report highlights the use of the sanctioned Russian ruble stablecoin A7A5 in cross-border payments by both institutions and businesses. Simultaneously, the Russian state is investing in its own digital infrastructure.
While Russia leads in overall transaction volume, Ukraine holds a significant position in the crypto landscape as well. In Chainalysis' 2025 Global Cryptocurrency Adoption Index, Ukraine and Russia ranked eighth and tenth, respectively.
The European crypto market demonstrates a "patchwork of convergence and transformation," marked by comprehensive regulations. Transaction volumes in Europe peaked at $234 million in December 2024, with a robust recovery spilling into 2025. This resilience underscores the maturity of the market. Restrictions on access to non-MiCA-compliant assets like USDT have prompted a reallocation of liquidity, with the use of EURC from Circle jumping 2,727% between July 2024 and June 2025. European banks are also exploring the launch of their own euro stablecoins.
