The Binance Exchange has witnessed a significant downturn in the monthly trading volumes of the Russian Ruble (RUB) and the Ukrainian Hryvnia (UAH) over the past two years, with the conflict between Russia and Ukraine likely playing a pivotal role in this decline.
According to data from crypto research firm Kaiko on X (formerly Twitter), RUB’s monthly trading volume has plummeted by more than 83% over the last two years. In 2021, RUB’s monthly trading volume stood at an impressive $507 million. However, in 2023, it has dwindled to a mere $85 million, marking an 83.2% decline.
The decline in RUB’s trading volume saw it fall below the $100 million mark in mid-2023 and spiral downward, reaching a two-year low in April of this year. Interestingly, there was a brief surge in RUB’s monthly trading volume after the escalation of Russia’s conflict with Ukraine in February 2022, peaking at a staggering $800 million.
Meanwhile, the monthly trading volume of the Ukrainian Hryvnia (UAH) on Binance has experienced an even more significant decline than RUB. Kaiko’s research indicated that, akin to RUB, UAH’s trading volume also saw a surge following the conflict in February last year, with its monthly volume reaching nearly $300 million. However, in the subsequent months, UAH’s monthly trading volume on the crypto exchange plummeted to as low as approximately $50 million.
Kaiko’s latest data reveals that the monthly trade volume of the Ukrainian Hryvnia now stands at less than $20 million. Russian traders constitute a substantial portion of Binance’s user base, accounting for nearly 6% of the platform’s total users over the past three months. Ukrainian traders also play a significant role, making up over 4.5% of the platform’s traffic.
The decline in trading volumes for both RUB and UAH on Binance underscores the potential impact of geopolitical conflicts on cryptocurrency markets. As the situation between Russia and Ukraine remains uncertain, it will be interesting to see how these trends evolve in the crypto landscape.
