Russia-Ukraine War Led To Spike In Eastern European Crypto Market, Study Shows

Ukraine recorded steady growth in crypto transfers from the onset of the war through June 2022.

A total of $630.9 billion was received by the Eastern European market on-chain between July 2021 and July 2022. ( Image Source :Chainalysis )

The ongoing Russia-Ukraine war has left an adverse economic impact across the globe. This includes an unprecedented meltdown in crypto prices in the last few months. However, as per a study by New York City-based blockchain analysis firm Chainalysis, the Eastern European crypto market landed on the greener side of the fence, becoming the fifth-largest cryptocurrency market in the world.

As per the 2022 Geography of Cryptocurrency Report by Chainalysis, a total of $630.9 billion was received by the Eastern European market on-chain between July 2021 and July 2022, representing over 10 percent of all global transaction activity during the period.

While most other regions have faced volatility in terms of crypto prices, Chainalysis noted that the Eastern European market remained stable at around 10 percent over the past few years. The firm also said that 18.2 percent of all cryptos received by Eastern Europe are from addresses that are associated with “risky or illicit activity,” notably more than any other region.

7/ 18.2% of all cryptocurrency received by Eastern Europe comes from addresses associated with risky or illicit activity, more than any other region. pic.twitter.com/PgDnFzKZy2

— Chainalysis (@chainalysis) October 12, 2022

After the war began in late February this year, both Russia and Ukraine saw a boost in crypto transfers in March. However, in the following months, Chainalysis noted that Russia saw a dip in transactions. This could have been caused by the slew of sanctions imposed on Russia by several nations as a response to the invasion. 

Ukraine, on the other hand, recorded steady growth in crypto transfers from February through June.

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