Russia dethrones the United Kingdom as the largest crypto market in Europe

Russia has overtaken the United Kingdom as the largest crypto market in Europe. This is evident from new research by Chainalysis. Between July 2024 and June 2025, Russia received more than $376 billion in crypto, an increase of 48 percent from a year earlier. According to analysts, the rapid growth of DeFi and large institutional transactions is mainly responsible for the rise.

Explosive growth through DeFi and stablecoins

Chainalysis points to a notable increase in the use of DeFi platforms in Russia. At the beginning of 2025, activity was eight times higher than a year earlier. This has now leveled off somewhat, but the level is still three and a half times above the average of mid-2023. This means that Russia is leaving the rest of Europe behind.

An important catalyst is the rise of the A7A5 stablecoin, pegged to the Russian ruble. The coin was launched in Kyrgyzstan in early 2025 and already reached a market capitalization of $500 million in September. According to Chainalysis, the stablecoin facilitates cross-border payments for companies and institutions, despite international sanctions.

Institutional inflow accelerates adoption

In addition to retail use and DeFi, institutional activity is also notable. Large transactions of more than $10 million increased by 86 percent in Russia, almost double the growth in the rest of Europe. Chainalysis calls this scale of institutional activity exceptional.

According to the researchers, these large transfers strengthen network effects in the Russian crypto market. The larger the market, the more attractive it is for new participants. That creates a self-reinforcing cycle of growth and adoption.

Europe is professionalizing, but Russia is lagging behind

The crypto sector is also growing elsewhere in Europe. There is strong expansion, especially in Germany, Ukraine and Poland, often driven by new regulations or remittance traffic. Yet Russia remains the dominant country in Europe, largely due to its combination of institutional adoption and explosive DeFi growth.

Despite sanctions and geopolitical tensions, the Russian crypto market appears to be robust. According to Chainalysis, the shift is not temporary, but structural. In Russia, crypto is increasingly developing into a fully-fledged alternative to traditional financial services.