Contrary to government fears, Russian crypto usage is down 50%

The latest data from Chainalysis, a blockchain data platform, shows that Russian crypto usage has dropped by 50%! This is contrary to what the community expects from the volume of crypto activity from Russia.

Due to the imposed economic sanctions, crypto analysts believe that Russia could use crypto as a way to escape the situation. However, that doesn’t seem to be happening.

According to the data, crypto trading volume across all Russia-based exchanges fell by 50% in the past week. Volumes that were just over $70 million are now around $34 million.

Relatively Low Crypto Volume in Russia

Citigroup Inc analyst Alexander Saunders said the volume from the country was quite low.

He added that Russian buying hasn’t really affected Bitcoin’s recent rally. Instead, he believes the price increase was due to increased demand under Russian influence, which did not happen.

“Russian volumes have been relatively weak so far, suggesting that the price action is more due to investors positioning themselves for an expected uptick in demand from Russia, rather than Russian demand itself. .”

The likelihood of Russia using crypto to ease sanctions is now very low. Authorities in the United States and Europe have already set up different enforcement bodies that will ensure that Russia cannot avoid the restrictions.

According to Jake Chervinsky, head of policy at the Blockchain Association, Russia is more likely “to use Chinese CIPS than a public network it cannot control.”

Meanwhile, Ukraine is still accepting crypto donations and you can also support Ukrainian NFT artists.