Binance’s share among Russian web traffic plunged by 30%, central bank says

As a seasoned crypto investor with a keen interest in the Russian market, I find the recent developments both intriguing and concerning. The departure of Binance from the Russian market has led to a significant redistribution of web traffic among other platforms, with Russians scrambling to find new alternatives. This shift is evident in the Bank of Russia’s latest research report, which indicates a surge in crypto market activity during Q4 2023 and Q1 2024.

Russians are progressively looking for alternative crypto platforms as Binance withdraws from the market, based on the Bank of Russia’s observations.

As a crypto investor following the Russian market, I’ve noticed a substantial change in web traffic patterns due to Binance’s exit from Russia. According to the Bank of Russia’s recent report, this departure has fueled an increase in crypto market activity among Russians during Q4 2023 and Q1 2024. This surge can be attributed to both rising cryptocurrency valuations and the natural response of investors seeking alternative platforms.

After Binance’s exit, there was a significant shift in web traffic among Russian users towards other crypto exchanges. Binance’s dominance of Russian web traffic dropped from 47% in Q3 2023 to just 16% in Q1 2024. In contrast, the combined share of five unnamed crypto exchanges rose from 39% to 64%.

As a financial analyst, I’ve observed a significant increase in web traffic from Russian users on major cryptocurrency platforms during the recent period. Compared to the second and third quarters of 2023, this traffic surge reached an impressive 16.4%. In total, these platforms welcomed approximately 104.6 million visits – a noteworthy figure according to the financial regulator’s report, even though they didn’t disclose which specific platforms were included in their data.

I’ve analyzed the data and found that the average unique monthly users on these platforms increased by more than 15%, with Russian visits comprising 7% of the total traffic in the first quarter of 2024. However, this percentage is lower than the peak of 9% observed during the same period in 2023.

As an analyst, I’d rephrase that as follows: In the latest report, the Bank of Russia disclosed that the transactions involving cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and USD Coin (USDC) by Russians reached a staggering 4.5 trillion rubles or approximately $51 billion. This figure represents a significant growth of 15.6% compared to the previous two quarters in the year 2023.

Amidst the tumultuous Russian crypto market, where uncertainty reigns supreme, users are scrambling for alternative, secure havens for their digital currency, following rumors of potential “rug pulls.”

I’ve analyzed recent news reports and found an instance involving Beribit, a Russian cryptocurrency exchange, which has been under scrutiny due to allegations that it is owned by Ukrainian oligarch Serhiy Kurchenko, who is linked to Ukraine’s ex-president Viktor Yanukovych. This scandal came to light after Beribit failed to return approximately $4 million to its customers. At present, there are indications that the exchange has yet to restore these funds.

The Bank of Russia has stated that although there’s been heightened engagement and exploration of fresh investment avenues, the value of cryptocurrencies held by individuals and institutions in Russia hasn’t reached a substantial level to constitute a distinct threat to the nation’s financial security.

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2024-05-28 11:24