The latest data from Chainalysis, a blockchain data platform, shows that Russian crypto usage went down by 50%! This is contrary to what the community expected the volume of crypto activity from Russia would be.
Due to the economic sanctions imposed, crypto analysts believe that Russia could use crypto as a way to evade the situation. However, that doesn’t seem to be happening.
According to the data, crypto transactions volume in all Russian-based exchanges plunged by 50% last week. Volumes that were a little over $70 million are now at around $34 million.
Crypto Volume in Russia Relatively Small
Citigroup Inc analyst Alexander Saunders said the volume from the country has been quite small.
He added that Russian purchases did not really affect the recent rally of Bitcoin. Instead, he believes that the increase in price was because of an expected Russian-influenced surge in demand, which did not occur.
“Russian volumes have been relatively small so far, suggesting that the price action is more due to investors positioning for an expected uptick in demand from Russia, rather than Russian demand itself.”
The probability of Russia using crypto to relieve the sanctions is now very slim. Authorities in the United States and Europe already set up different enforcement bodies that will ensure Russia cannot avoid the restrictions.
According to Jake Chervinsky, head of policy at The Blockchain Association, Russia is more likely “to use China’s CIPS than a public network they can’t control.”
Meanwhile, Ukraine is still accepting donations in crypto and you can also support Ukrainian NFT artists.
All investment/financial opinions expressed by NFTevening.com are not recommendations.
This article is educational material.
As always, make your own research prior to making any kind of investment.
