Russians are out of Russia and taking their money, but crypto has not yet heard the results, according to blockchain data.
The Russian invasion of Ukraine caused a mass exodus of people from both countries. Immigrants and refugees turn to crypto for cash, hoping to keep their money safe until it can be converted into fiat currency.
Despite the initial increase in trade volume after Russia's neighbor invasion, this has had a small impact on the entire crypto market, data from blockchain analytics firm Crystal Blockchain shows.
Bitfury Crystal Blockchain is a comprehensive analytics tool that uses sophisticated analysis to give organizations a complete overview of the ecosystem.
Crystal Blockchain sees no increase in on-chain activity
After monitoring funds in the major cryptocurrencies and peer-to-peer markets like Paxful, Crystal Blockchain noted that there was no significant increase in on-chain activity, transactions gradually declined, and digital asset flows decreased since the war began.
"We believe the decline could be due to global market conditions, as prices fall by the end of 2021," said Nick Smart, Crystal Director of Blockchain Intelligence.
Chainalysis reports initial surge, but later decline
It is important to remember that the great international trade that used to support the trading pairs of rubles used its sanctions on Russian consumers shortly after the start of the war.
- Binance stopped accepting Russian bank card payments,
- CEX.io suspended withdrawals and deposits from Russian users.
- CoinZoom has suspended registration from Russia.
Chainalysis also noted at the beginning of the blog post that the Russian ruble trading volume rose sharply after the attack, growing more than 900% to more than 70 million dollars between February 19 and 24, its highest record growth since May 2021 .
However, work has continued to decline with spikes from time to time since then, the company said.
Chainalysis also saw a spike in the work of Russian whales, or crypto wallets carrying large balances. This was caused by the company to Russian users. Chainalysis noted that the funds sent more than $ 62 million to other addresses in March.
Most of these addresses were associated with OTC desks and transactions, which is why the company said it was difficult to know what this might mean, and whether spending was linked to avoiding sanctions.
Crystal Blockchain says that although crypto will be very popular in Russia, it will only be used as a "random transfer system" in the near future.
Read More:
They just revealed what they believe are the ten best stocks for investors to buy right now…
Courtesy Grizler.com
