There have been many speculations that Russian might use crypto to evade sanctions imposed by the G7 countries and the European Union. But, the current market data shows that Russia’s crypto trading volume is dropping like never before. In the last 1 week, there has been a 50% drop in volume across the exchanges in Russia.
Russia’s crypto trading volume is dropping
A Chainalysis report suggests that the trading volume on the Russian exchanges was at $70 million around 1 week back. And at present, it has dropped more than 50% to $34 million. An analyst from Citigroup said that the volume from Russia has actually been less. And it had very little role to play in the recent rally. But due to speculations that Russians are buying a lot of crypto, the rally was triggered.
Yes, Russians are investing in cryptocurrencies, but on a global scale, the volume wasn’t high enough that the markets would be affected. This is a problem because the price has already corrected to previous levels, and the speculations of Russians buying a lot of cryptos have also been discarded now. Though, it doesn’t mean that buying Bitcoin to save the value of one’s money is a wrong decision in any way.
This also shows that Russia might not be using or even trying to evade sanctions using crypto. The EU and G7 countries have already been working on preventive measures to avoid any such thing from happening. And reports also suggest that Russia will take help from China’s CIPS rather than an open ledger network to relieve sanctions. This is because crypto won’t be able to provide the liquidity to help Russia.
Crypto is playing an important role in this war
While it doesn’t seem that many Russian citizens are using crypto to preserve the value of their money to the full extent, in the case of Ukraine, they are getting a lot of help. The country has already raised more than $50 million through donations. More money continues to pour in from across the globe to help Ukraine in this dire situation. They have also raised around $6 million from an NFT of the country’s flag.
What are your thoughts as Russia’s crypto trading volume drops more than 50% in a week? And do you think that the last Bitcoin rally was due to speculation? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.