Change is blowing across the Russian bitcoin market. Users of Binance have been rushing to locate alternate platforms to house their digital assets before they leave early 2024.
For local players, this change in allegiance has, however, given an unanticipated chance for land grab for domination in the biggest nation on Earth by landmass.
Crypto Market Heats Up Despite Binance Chill
The most recent publication from the Bank of Russia presents an interesting picture. Although Binance’s hold on the market relaxed significantly—its web traffic share dropped from 47% to a mere 16% in only a quarter—general crypto activity increased.
Shot up by a robust 16.4% compared to the previous six months, web traffic across all major crypto platforms—including exchanges, peer-to-peer platforms, over-the-counter services—shot up. This rise corresponds with a period of increasing crypto market prices, implying a developing demand for digital assets among Russian consumers.
A void created by Binance’s withdrawal is being filled by a number of local contenders. The paper notes five unidentified exchanges whose online traffic share balloon from 39% to a dominant 64% in the same period. This explosive climb implies that these local sites are successfully catching the flow of users leaving Binance.
Crypto Engagement On The Rise
The movement in the crypto market is about user involvement as much as traffic. According to the Bank of Russia, on these networks the average monthly count of unique users—identified by IP addresses—showcases a notable rise. A growing interest in the digital asset field is shown by the increase in the percentage of Russian internet visits aimed towards crypto sites accompanying this development.
The facts don’t stop there. The paper notes that Russian users of big cryptocurrencies such Bitcoin, Ethereum, Tether, and USD Coin are significantly increasing their inflows and outflows.
This activity results in a staggering 4.5 trillion roubles (about $51 billion), a 15.6% increase over the half-year before. These numbers highlight the major part cryptocurrencies are performing in the Russian financial scene.
The Shadow Of Rug Pulls: Security Concerns Loom Large
A dark cloud looms above, the spectre of rug pulls, even while the market is humming. The latest controversy involving Beribit, a Russian exchange supposedly connected to an oligarch from Ukraine, reminds us sharply of the security concerns related to various platforms.
Beribit’s supposed disappearance together with allegedly $4 million in user money has naturally rocked confidence and raised demand for trustworthy substitutes.
Binance’s leaving surely changed the Russian crypto scene. The next months will be critical in deciding the direction of this dynamic digital terrain as new players arrive, user activity increases, and security issues demand attention.
Featured image from Unsplash, chart from TradingView