• According to blockchain analytics firm Kaiko, bitcoin ruble trading volume reached its highest level so far this year last week. The overall traffic looks very small compared to Bitcoin’s usual daily volume of $2-40 billion, at around $14.2 million.
  • The majority of the volume associated with Russia appears to be personal hoarding. She explained that this uptake of bitcoin is particularly relevant to the retail sector, where they are actively buying in small quantities. While these platforms may suit the needs of small-scale traders, they currently lack the capacity to meet the needs of large-scale traders.
  • Meanwhile, on the day of Russia’s invasion of Ukraine on February 24, the average trade size of bitcoin ruble trades on Coin reached a 10-month high of $580. Notably, the Tether exchange appears to be handling the majority of ruble-denominated cryptocurrency trading volume.

Despite the increased economic restrictions imposed on Russia, investors appear to be able to execute cryptocurrency transactions.

Bitcoin trading pairs valuation

According to blockchain analytics firm Kaiko, bitcoin ruble trading volume reached its highest level so far this year last week. The overall traffic looks very small compared to Bitcoin's usual daily volume of $2-40 billion, at around $14.2 million. On March 5, Kaiko announced that bitcoin trading pairs denominated in rubles had seen a significant increase.

Meanwhile, on the day of Russia's invasion of Ukraine on February 24, the average trade size of bitcoin ruble trades on Coin reached a 10-month high of $580. Notably, the Tether exchange appears to be handling the majority of ruble-denominated cryptocurrency trading volume.

Andrew Tu, business development manager at cryptocurrency algorithmic trading firm Efficient Frontier, said that perhaps more Russian retail investors are trying to get rid of the cryptocurrency altogether in favor of BTC. While it's unlikely that the dollar restrictions will actually apply to USDT holders, I think some are just taking extra precautions.

According to the blockchain analysis firm's newsletter, Binance, Yobit and LocalBitcoins are the only three cryptocurrency exchanges in the world that allow cryptocurrency transactions denominated in rubles to be paired. As a result, many of those calling for cryptocurrency exchanges to ban Russian users after Russia's invasion of Ukraine are hoping that Cryptocurrency will follow suit.

Cryptocurrency ends unethical behavior

However, U.S. cryptocurrency exchanges Coin Security and Coinbase have refused to impose a blanket ban on Russians, instead insisting on restricting those who are subject to sanctions. Cryptocurrency CEO Changpeng Zhao said a broad ban would be unethical, while Coinbase CEO Brian Armstrong acknowledged that cryptocurrencies are currently a lifeline for many ordinary Russians.

According to Caroline Bowler, CEO of Australian cryptocurrency exchange BTC Markets, most of the volume associated with Russia appears to be personal hoarding. She explains that this uptake of bitcoin is particularly relevant to the retail sector, where they are actively buying in small amounts. While these platforms may suit the needs of small-scale traders, they currently lack the capacity to meet the needs of large-scale traders.

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