Chainalysis’s 2025 Geography of Crypto Report highlights Europe’s maturing digital asset markets and the regulatory impact of MiCA.
Chainalysis released new findings from its 2025 Geography of Crypto Report, revealing how Europe’s crypto economy is undergoing rapid transformation as regulation, stablecoins, and decentralised finance (DeFi) reshape activity across the continent.
The analysis shows that between July 2023 and June 2025, European transaction volumes rebounded strongly after a mid-2024 slowdown, peaking at US$234 billion in December, underscoring the region’s resilience and maturity.
Convergence and Growth Across Europe
Chainalysis’s reclassification of regional categories now distinguishes between the European Economic Area (EEA), the rest of Europe, and Russia and the United Kingdom, reflecting distinct geopolitical and regulatory realities.
The data show that Russia leads the region with US$376.3 billion received, followed by the UK (US$273.2 billion), while Germany (US$219.4 billion), Ukraine (US$206.3 billion), and France (US$180.1 billion) close the gap, signalling broader market convergence across Europe.
Strong Network Effects Fuel Expansion
Europe’s growth pattern challenges the assumption that larger markets grow more slowly. Countries such as Germany (54%), Ukraine (52%), and Poland (51%) recorded double-digit gains, demonstrating how network effects are driving sustained expansion. As markets grow, they attract more participants, reinforcing liquidity and institutional engagement.
Chainalysis notes that Europe’s crypto adoption remains in the acceleration phase of the classic S-curve, with mature markets like Germany and Russia still expanding rapidly due to strong institutional and retail participation.
MiCA Reshapes Regulation and Market Behaviour
The Markets in Crypto-Assets (MiCA) framework marks Europe’s shift from fragmented oversight to the world’s first unified crypto regulatory system. While some jurisdictions have delayed full enforcement until 2026, MiCA has already triggered a transformation across the financial sector. Traditional institutions including banks, payment firms, and asset managers, are entering the crypto space, offering custody and trading services under clearer regulatory guidance.
Stablecoin Markets Pivot Toward the Euro
MiCA’s introduction has accelerated the rise of EUR-denominated stablecoins. According to ESMA’s interim register, there are now 15 e-money token issuers managing 25 single-currency stablecoins, while asset-referenced tokens remain absent.
The shift has fundamentally reshaped liquidity flows: Circle’s EURC surged 2,727% between July 2024 and June 2025, far outpacing USDC’s 86% growth, as compliance requirements excluded USDT from most regulated venues. This shift marks a strategic transition from USD to EUR stablecoins, reflecting both regulatory alignment and geopolitical change.
DeFi Adoption Strengthens
DeFi activity is rising across Europe, with the EEA recording notably higher cross-chain “bridge” transactions—65% above non-EEA levels—during February and March 2025. Lending activity peaked in May as users increasingly utilised decentralised protocols for yield and liquidity.
In contrast, non-EEA regions, particularly Russia, exhibited stronger decentralised exchange (DEX) activity, pointing to divergent patterns between regulated and unregulated markets.
UK: From Centralised Trading to DeFi Maturity
While the UK slipped behind Russia in transaction volume, its crypto market remains robust, growing 32% year-on-year. Retail traders are increasingly active on DeFi platforms, driven by consumer protection measures that restrict access to some centralised exchanges.
The UK’s institutional ecosystem, supported by initiatives like the Wholesale Financial Markets Digital Strategy and the Digital Securities Sandbox, positions the country as a hub for institutional crypto clearing and settlement.
Russia: Institutional Flows and DeFi Expansion
Russia’s crypto volume rose sharply to US$379.3 billion, fuelled by 86% growth in large institutional transfers and an eightfold increase in DeFi activity during early 2025. The emergence of the A7A5 ruble stablecoin has supported cross-border payments for businesses and financial institutions, underscoring crypto’s expanding role in alternative financial systems.
The findings illustrate a continent in transition: MiCA has catalysed regulatory clarity, institutional entry, and stablecoin innovation, while DeFi continues to mature across both retail and institutional channels.
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