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After Binance, unexpected boom in cryptocurrencies in Russia
11.45am ▪ 4 minute read ▪ by Mikaia A.
The Russians, champions of dedollarization, did not hesitate to explore digital ways to circumvent the economic sanctions imposed by the West. Faced with growing isolation, digital assets have become a lifeline for many of them. The rise of cryptocurrencies offers a viable alternative to keep their economy afloat. Therefore, Binance’s recent exit from the Russian market caused a real storm.
Binance backs down, Russia reinvents itself in cryptocurrencies
THE abrupt withdrawal by Binance from the Russian market a few months ago triggered a real digital gold rush. Shocked, users had to urgently find new shelters for their valuable possessions. The Bank of Russia, in his latest reportprovides a fascinating account of this forced migration.
The once-omnipotent decentralized cryptocurrency exchange (DEX) Binance sees its share of web traffic melts away like snow in the sun, falling from 47% to just 16% within a quarter. But far from discouraging cryptocurrency enthusiasts, this retreat has reinvigorated the industry.
In fact, cryptocurrency exchanges have never been so successful. Traffic on exchanges, peer-to-peer platforms and other over-the-counter services increased 16.4% in just six months. This excitement coincides with a rise in cryptocurrency valuations (Bitcoin, Ethereum, Dogecoin, Solana, etc.), indicating a growing appetite among Russians for these digital assets.
In the void left by Binance, an army of local competitors has emerged. Five anonymous exchanges they saw their traffic share explode, going from 39% to 64%. This meteoric rise proves that these newcomers are successfully capturing the wave of users seeking new platforms.
Russia: the rise of digital rubles
In Russia, cryptocurrencies don’t just attract attention; they are also capturing attention and clicks. The Bank of Russia, author of a CBDC projectinforms us that the number of unique users of crypto platforms has skyrocketed, with these Russian netizens looking for new digital territories for their investments. Every month, an ever-increasing number of people connect to these sites, causing the percentage of Russian Internet visits to these sites to increase more and more.
And it’s not just about clicks. Cryptocurrency flows, from Bitcoin to Ethereum to Tether and USD Coin, are increasing spectacularly. With 4.5 trillion rubles exchangedor about $51 billion, saw the semester an increase in transactions of 15.6%.. This makes cryptocurrencies a pillar of the Russian financial landscape.
However, all is not rosy in the world of virtual currencies. “Rug pulls” – these crypto scams in which developers abscond with funds – cast an ominous shadow. Beribita platform linked to a Ukrainian oligarch, recently disappeared, taking away 4 million dollars of its users’ money. A serious blow to the confidence of investors, who are now asking for safer alternatives.
THE departure of Binance has shaken up the Russian cryptocurrency market, paving the way for new players and increased user activity. But the road is full of obstacles and the next few months will be crucial in defining the future of this vibrant digital landscape.
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Mikaia A.
The blockchain and cryptocurrency revolution is underway! And on the day when the impacts are strong and the most vulnerable economy in the world is affected, against all hope, you will say that I was for what I chose
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.