Recent data from cryptocurrency analytics firm Kaiko indicates a significant drop in the monthly trading volume of the Russian Ruble (RUB) on Binance, with an 83% decrease over the past two years. In 2021, the monthly RUB trade volume peaked at $507 million, but it has since shrunk to a mere $85 million by 2023.
In parallel, the Ukrainian Hryvnia (UAH) has seen an even steeper decline in trade volume, surpassing that of the RUB’s downturn. The ongoing geopolitical tensions between Russia and Ukraine are presumed to be a central factor in this diminishing trend.
Kaiko’s research reveals that both RUB and UAH experienced a surge in trading volume following the escalation of hostilities in February of the preceding year, reaching a peak of nearly $300 million for UAH. Nevertheless, subsequent months witnessed a significant contraction, with UAH’s monthly trading volume on Binance plummeting to around $50 million.
📉 In 2023, RUB monthly trade volume on Binance averaged just $85mn, down from $507mn in 2021.
UAH (Ukranian Hryvnia) trade volume declined even more over the same period. pic.twitter.com/13ScD2ricd
— Kaiko (@KaikoData) September 6, 2023
The most recent data underscores the challenges faced, with the monthly trade volume of the Ukrainian Hryvnia now falling below $20 million. Despite this volatility, online traffic data underscores that Russian and Ukrainian traders remain active on Binance, comprising approximately 6% and 4.5% of the platform’s total users, respectively, over the past three months.
This decline in trade volumes raises questions about the broader implications for cryptocurrency markets, highlighting the profound impact of geopolitical conflicts on digital asset trading.