Russia’s invasion of Ukraine, and the ensuing economic imposed sanctions mostly on the nation, have apparently led to a surge in ruble trading pairs on the cryptocurrency market.
According to a March 1 story by Frank Chaparro for The Block, Russian investors are becoming more active on cryptocurrency exchanges.
Since Russia’s invasion of Ukraine began, the average daily volume of ruble pairings on crypto platform Binance has surged to $35.8 million, up from $11 million earlier.
And according to study, the spike in activity demonstrates that cryptocurrency exchanges are one of the few outlets for Russian people to swap their fast weakening ruble.
According to an unidentified exchange executive, The Block:
Exchanges that enable the onboarding of RUB pairs will be in high demand, as this is nearly the only method for many people to get out of RUB (banks shut down fx facilities).
And according to survey, cryptocurrency exchanges provide a safe haven beyond financial restraints, with several prominent operators, such Binance and Coinbase, refusing Ukrainian government requests to implement blanket prohibitions on Russian users.
The impact of economic sanctions on Russia’s economy is already visible, with the VanEck Russian ETF losing more than 60% of its value in February and the ruble plunging to less than $0.01 last week.
New Crypto Conflict
The potential of peace negotiations is not the sole reason for the cryptocurrency’s recovery. Prices have risen as a result of speculation about how cryptocurrency may assist Russia in evading stringent global sanctions.
Some experts also believe that the battle may prompt the Federal Reserve to relax its projected economic tightening measures, making risky assets more appealing once again.
Russia-Ukraine Discussions Raise Only A Sliver Of A Hope For De-Escalation
The likelihood of discussions between Russia and Ukraine appears to have had a role in crypto’s rise.
Representatives from the two nations met for five hours on February 28 at an unknown location near the Belarus border. Aside from a vow to keep discussing, no agreement was achieved.
Concurrently, Russian forces advanced on Kyiv, Ukraine’s capital city. Blasts reportedly heard in Kyiv even while negotiators remained in the first round of negotiations, according to the Associated Press.
Crypto researchers have warned that recent gains may be short-lived due to persistent geopolitical uncertainties.
The author’s or anybody else’s thoughts or opinions represented in this post are for informative purposes only and do not constitute financial, investment, or other advice. Investing in or dealing in crypto assets carries financial risk.