Russia takes the European lead in crypto adoption

Russia has emerged as the dominant crypto player in the Old Continent’s expanding cryptocurrency space, overtaking the U.K. in the latest Chainalysis report on European crypto adoption.

The study has registered significant growth in Europe’s “remarkably resilient” crypto assets market over the past two years, marked by comprehensive regulations taking hold across the region.

Russia ranks first among European crypto markets

Cryptocurrency adoption in Europe “highlights a patchwork of convergence and transformation,” according to Chainalysis, which published its latest report on the matter on Thursday.

During the period covered by the research, the region showed “remarkable growth and resilience,” the U.S.-based blockchain analytics firm points out.

Transaction volumes back the claim, peaking at $234 million in December 2024, after declining earlier that year. The “robust recovery” spilled into 2025, underlining the maturity of the market.

The leading 10 markets span all corners of the continent, the authors noted, “demonstrating broad-based adoption across the region.”

Against this backdrop, Great Britain ceded the top spot to the Russian Federation, Chainalysis reveals and details further:

At the same time, the difference between the U.K. and other major markets shrank. The previously smaller Germany, Ukraine, and France are seeing similar levels of crypto activity, with volumes reaching $219.4 billion, $206.3 billion, and $180.1 billion, respectively.

Chainalysis registers ‘strong network effects’

The reasons for this growth, exceeding 50%, are unique in each case. Germany, for example, is becoming a preferred destination for crypto platforms due to the smooth implementation of EU’s new rules for the industry. Ukraine and Poland, on the other hand, are tapping into remittance flows and grassroots adoption.

There is a common denominator, however. Chainalysis elaborates:

“This pattern suggests powerful network effects in crypto adoption: as markets expand, they become increasingly attractive to new participants, creating a self-reinforcing growth cycle,” its analysts believe.

U.K. and Russia leaning towards DeFi

This year, the American crypto forensics company has implemented a different classification of European crypto markets, saying it reflects better current activity and geopolitical realities.

It divides European nations into three groups – the European Economic Area, the Rest of Europe, Russia, and the U.K. The latter two have been analyzed separately to emphasize their significantly larger volumes of crypto activity.

With 32% growth, the United Kingdom remains a strong market, despite losing the lead to Russia, but a shift in trading activity from major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) towards stablecoins and altcoins suggests the British market is maturing.

Britain’s crypto ecosystem draws its strength mainly from significant institutional engagement, Chainalysis remarks. But it also notes that while institutional players prefer centralized venues, retail traders increasingly favor DeFi (decentralized finance) platforms, indicating that the U.K. market is evolving, rather than contracting.

The report underscores Russia’s expansion into Defi as well, pointing out that the country’s remarkable crypto volumes result from two key trends – surging institutional transfers, which grew 86%, and accelerating DeFi adoption, which saw an eight-fold increase in early 2025. Chainalysis explains:

It also emphasizes that the trend is exemplified by the sanctioned Russian ruble stablecoin A7A5, used in cross-border payments by both institutions and businesses.

The document further highlights growing DeFi activity in the rest of Europe, the influence of the Markets in Crypto Assets (MiCA) regulation that’s currently being implemented by EU member-states, as well as the rise of euro stablecoins at the expense of U.S. dollar-pegged cryptocurrencies.

“The European crypto landscape of 2024-25 reflects a market in sophisticated transition, shaped by regulatory frameworks like MiCA, evolving institutional engagement, and growing DeFi … European crypto adoption remains dynamic and resilient,” Chainalysis concludes.

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