While Western European nations like the United Kingdom and Germany are showing slower growth in cryptocurrency use, Russia has emerged as the continent’s most active crypto market, according to a new report from blockchain analytics firm Chainalysis.
Between July 2024 and June 2025, Russia reportedly processed $376.3 billion worth of crypto transactions — the highest in Europe. The new European Crypto Adoption Report, released on Thursday, merges previously separated regional analyses into one comprehensive overview covering Central, Northern, Western, and Eastern Europe.
“This year, we’ve redefined our regional groupings to reflect both the evolution of crypto activity and current geopolitical conditions,” Chainalysis explained.
Russia’s crypto activity surges nearly 50%
Compared to last year’s total of $256.5 billion, Russia’s transaction volume has increased by roughly 48%, widening the gap with major economies such as the United Kingdom, which recorded $273.2 billion, nearly one-third less.
Chainalysis attributes this remarkable growth to two key forces:
- A major rise in institutional transfers, and
- Expanding activity within decentralized finance (DeFi) platforms.
Large transactions — defined as transfers exceeding $10 million — soared by 86% year-over-year, nearly double the average increase seen across the rest of Europe (44%).
Retail and DeFi activity also on the rise
Russia also dominates both large and small-scale retail crypto segments, with year-on-year growth surpassing the European average by about 10%.
Even more striking is the explosion in DeFi participation: Russia’s DeFi activity has grown eightfold since early 2025, Chainalysis noted. This expansion suggests that crypto is increasingly being integrated into the country’s financial infrastructure, not just used for trading or speculation.
A sanctioned stablecoin fueling cross-border flows
The report also points to A7A5, a ruble-pegged stablecoin issued in Kyrgyzstan, as a major player in this ecosystem. Despite being sanctioned, A7A5 has become the largest non–US dollar stablecoin globally, facilitating cross-border payments for institutions and businesses.
By September 2025, A7A5’s market capitalization reached $500 million, overtaking Circle’s euro-pegged EURC.
However, both the European Union and the United States have criticized the stablecoin, alleging that it’s being used to help Russia bypass sanctions. The US Treasury has even linked A7A5 to Grinex, a platform reportedly involved in money laundering and ransomware operations totaling over $100 million in illicit transactions.
Chainalysis concludes that Russia’s expanding DeFi sector, combined with its growing use of stablecoins like A7A5, reflects a deepening reliance on crypto amid ongoing sanctions and regulatory isolation. The report’s release coincided with the Financial Stability Board’s exclusion of Russia from its latest review on cross-border crypto regulations.
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