According to a recent report from the US blockchain analytics firm Chainalysis, cryptocurrency adoption in European nations such as the United Kingdom and Germany is falling behind that of Russia.
Russia has emerged as the top crypto market in Chainalysis’ latest report on European Crypto Adoption, with $376.3 billion received in crypto from July 2024 to June 2025.
Published on Thursday, the report integrates analyses of regions previously reviewed separately, encompassing Central, Northern, and Western Europe, alongside Eastern Europe as a whole.
“For this year’s report, we’ve revamped our regional classifications to better mirror both current crypto activities and geopolitical realities,” stated Chainalysis.
Russia’s volumes increase nearly 50% year-over-year
Russia’s crypto volumes have risen by 48% from last year’s $256.5 billion, extending its advantage over major economies like the UK, which saw $273.2 billion in the past year—about 30% less.
Chainalysis attributed the growth in Russia’s crypto adoption primarily to two factors: a surge in large institutional transfers and the expanding use of decentralized finance (DeFi).
“The scale of institutional activity is particularly striking,” Chainalysis noted, as large transfers—those exceeding $10 million—increased by 86% year-over-year (YoY). This rate of growth is nearly double the 44% uptick observed in the rest of Europe.
Contributions from DeFi and retail
In addition to institutional activity, Russia also excels in both large and small retail segments, with YoY growth surpassing that of the rest of Europe by about 10%.
“DeFi adoption trends indicate a far more significant transformation,” Chainalysis remarked, noting that Russia’s DeFi activity surged to eight times its previous levels in early 2025.
The rapid growth of DeFi in Russia and the increase in large-value transfers suggest a growing acceptance of crypto for financial services, as concluded by Chainalysis.
The report also highlighted A7A5—a sanctioned ruble-pegged stablecoin issued in Kyrgyzstan—as a significant example of this trend, facilitating cross-border payments for institutional and business users.
Launched in early 2025, A7A5 has quickly become the world’s largest non-US dollar stablecoin by market capitalization, despite facing multiple sanctions.
This stablecoin has been criticized by the European Union for being a tool for sanction evasion by Russia. The US government has also connected A7A5 to Grinex, the successor of Garantex, which was accused of money laundering and ransomware attacks involving $100 million in illicit transactions.
Related: US rises to 2nd in crypto adoption as APAC sees most growth: Chainalysis
The ruble-pegged stablecoin reached a market cap of $500 million in late September, surpassing prominent non-US dollar competitors like Europe’s euro-pegged EURC, issued by Circle.
Chainalysis’s insights on Russia’s crypto market expansion over the past year come amid escalating sanctions and a growing regulatory focus in the region. Notably, Russia was excluded from the Financial Stability Board’s peer review on cross-border regulation, which was also published on Thursday.
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