Wednesday, May 29, 2024 ▪
4
min reading ▪ acc
Proponents of de-dollarization, the Russians have not hesitated to explore digital avenues to circumvent economic sanctions imposed by the West. In the face of increasing isolation, digital assets have become a lifesaver for many. The rise of cryptocurrencies offers a viable alternative to keep their economy afloat. The recent departure of Binance from the Russian market caused quite a storm.
Binance Struggles, Russia Re-emerges in Cryptocurrencies
THE hasty withdrawal from Binance Russian market launched a few months ago real digital gold rush. Frustrated users had to quickly find a new safe haven for their prized possessions. In its latest report, the Russian Central Bank makes a fascinating assessment of this forced migration.
Once almighty decentralized crypto exchange (DEX) Binance sees its share in melting web traffic like snow in the sun, passing through from 47% to a paltry 16% in the space of a quarter. But far from deterring cryptocurrency enthusiasts, this pullback has energized the sector.
In fact, crypto exchanges have never been so booming. Traffic on exchanges, peer-to-peer platforms and other over-the-counter services grew by 16.4% in just six months. This excitement coincides with an increase in the valuation of cryptocurrencies (Bitcoin, Ethereum, Dogecoin, Solana, etc.), a sign of the growing appetite among Russians for these digital assets.
In this void left by Binance, an army of local competitors rushed in. Five anonymous scholarships their share of traffic exploded, climbing from 39% to 64%. This increase shows that these newcomers are effectively capturing the wave of users looking for new platforms.
Russia: the rise of the digital ruble
In Russia, cryptocurrencies are not only spinning, but also attracting attention and cliques. The Bank of Russia, the author of the CBDC project, tells us the number of unique users of crypto platforms has skyrocketed, these Russian internet users looking for new digital countries for their investments. Every month, more and more of them join, which means that the share of Russian Internet visits to these sites is constantly increasing.
And it’s not just about clicking. The flow of cryptocurrencies, from Bitcoin to Ethereum to Tether and USD Coin, is experiencing a spectacular surge. WITH Exchanged 4.5 trillion rublesor approximately 51 billion dollars, the half-year was marked 15.6% increase in transactions. This makes cryptocurrencies a pillar of the Russian financial environment.
However, not everything is rosy in the world of virtual currencies. “Rug pulls” – crypto scams where developers evaporate with funds – cast an ominous shadow. Beribitaa platform linked to a Ukrainian oligarch, he recently disappeared and took $4 million its users. A severe blow to the confidence of investors who are now demanding safer alternatives.
The departure of Binance shook the Russian crypto market, gave way to new players and increased user activity. However, the path is strewn with pitfalls and the coming months promise to be crucial in defining the future of this vibrant digital landscape.
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The blockchain and crypto revolution is in full swing! And on the day the effects are felt by the most vulnerable economy in this world, I will say against all hope that I had something to do with it
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.