Eastern Europe has emerged as the fourth largest cryptocurrency market globally, accounting for over 11% of total cryptocurrency value received worldwide, with more than $499 billion in crypto transactions reported from July 2023 to June 2024. Decentralized finance (DeFi) activities contribute significantly, representing a third of this total, amounting to over $165 billion. Despite the rise of DeFi, centralized exchanges remain the primary beneficiaries, attracting $324 billion. Russia and Ukraine lead in transaction values, with Russia receiving over $182 billion and Ukraine $106 billion, buoyed by institutional transfers amidst ongoing conflict and sanctions. These reports highlight a notable trend of using cryptocurrencies, particularly Bitcoin, as a hedge against economic instability, particularly in Ukraine where inflation exceeded 26% by the end of 2022. This increasing adoption, fueled by both retail and institutional interest, indicates a growing reliance on cryptocurrencies in the region as a stabilizing financial alternative.

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