Crypto adoption in European countries like the UK and Germany is lagging behind Russia, according to the latest report from US blockchain analytics firm Chainalysis.
Russia emerged as the top crypto market in Chainalysis’ latest European Crypto Adoption Report, receiving $376.3 billion in crypto between July 2024 and June 2025.
Released on Thursday, the report combines analyzes from regions previously examined separately, covering Central, Northern and Western Europe, as well as Eastern Europe as a whole.
“For this year’s analysis, we have revamped our regional classifications to better reflect both current crypto activity and geopolitical realities,” Chainalysis said.
Volumes in Russia have increased by almost 50% since last year
Crypto volumes received by Russia increased by 48% from last year’s $256.5 billion, widening its lead over major economies such as the United Kingdom, which recorded $273.2 billion last year, about 30% less.
Chainalysis attributed Russia’s strong crypto adoption to two main factors: an increase in large institutional transfers and the growing use of decentralized finance (DeFi).
“The scale of institutional activity is particularly notable,” Chainalysis said, referring to large transfers – those exceeding $10 million – which increased 86% year-over-year (year-over-year). The pace of this increase is almost double the 44% growth seen in the rest of Europe, he adds.
DeFi and retail among the contributors
Beyond institutional activity, Russia also leads in the large and small retail segments, with annual growth around 10% higher than the rest of Europe.
“DeFi adoption patterns reveal an even more dramatic shift,” Chainalysis said, referring to DeFi activity in Russia which increased eight times from its previous levels in early 2025.
The rapid expansion of DeFi in Russia and the increase in high-value transfers indicate growing adoption of crypto for financial services, Chainalysis concluded.
He also mentioned that A7A5 – a ruble-pegged stablecoin issued in Kyrgyzstan – is a major example of this trend as it facilitates cross-border payments for institutional and corporate users.
Launched in early 2025, A7A5 has become the world’s largest non-US stablecoin by market capitalization, despite multiple sanctions.
The stablecoin has been criticized by the European Union for being used as a tool for Russia to evade sanctions. The US government has also linked A7A5 to Grinex, the successor to Garantex, which was allegedly involved in money laundering and ransomware attacks with $100 million in transactions linked to illicit activities.
Related: US Ranks 2nd in Crypto Adoption as APAC Sees Fastest Growth: Chainalysis
The ruble-pegged stablecoin reached a market capitalization of $500 million at the end of September, surpassing major non-US rivals such as Europe’s euro-pegged EURC, issued by Circle.
Chainalysis’s findings on the growth of the Russian crypto market over the past year come amid growing sanctions and increasing regulatory attention in the region. Russia was notably excluded from the Financial Stability Board’s peer review on cross-border regulation, also published on Thursday.
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