Inflation, supply chain disruptions and sanctions levied by the United States and others have all hit the Russian ruble. In fact, since Russia’s initial invasion of Ukraine, the ruble has plummeted 40% against the U.S. dollar. As a result, some Russian citizens are taking refuge in cryptocurrencies. So what cryptos are Russians buying? And why does it matter? You can find the answers to those questions using one of the largest exchanges in the world, Binance.
One key argument for crypto bulls is that digital currencies are an answer for economically turbulent nations. In Turkey, for example, the lira has been on a downward slope since 2018. The ongoing debt crisis has prompted many Turks to turn toward digital assets.
Instead of funneling their savings into gold or U.S. dollars, cryptocurrencies have emerged as an option for fighting inflation and an unstable national currency.
As we reported earlier, Turkish people are spreading their bets across a variety of digital assets. Some invest in Bitcoin (BTC-USD). Others look to the Tether (USDT-USD) stablecoin. Data also show a high volume of Shiba Inu (SHIB-USD) trades.
Binance Shows How Russians Are Fighting Inflation
Now, many Russians find themselves in similar positions as the ruble drops relative to the U.S. dollar. With inflation rising, prices for everyday essentials, cars, televisions and medications are seeing price hikes.
And, just like in Turkey, some Russians are placing their faith in cryptocurrencies. So what cryptos are Russians buying now?
Binance, the largest crypto exchange in the world by trading volume, provides some of the best insight into Russian crypto purchases. The platform provides users with insight into the largest volume of trading pairs containing the ruble.
Investors should note this is not all-encompassing. Russians are still trading on other centralized and decentralized exchanges, and they are still trading pairs that don’t contain the ruble. However, these data still represent the largest single source of fiat-to-crypto trading in the world, and they can give a good idea of what cryptos Russians are finding safety in.
What Cryptos Are Russians Buying? And Why Does It Matter?
Looking at the exchange, it is clear that stablecoins are among the most popular trades by Russians. The USDT-RUB pair is the largest trading pair involving the ruble by volume. This aligns closely with what Turkish investors have been buying, and it falls in line with recent reports of Russian Tether trades skyrocketing. As Bitcoin.com reports, Russian ruble transactions make up over 2% of the global USDT trading volume.
The second most popular investment is Bitcoin, which also falls in line with what we have seen from other countries. Binance’s native stablecoin, Binance USD (BUSD-USD) is the third largest play. Ethereum (ETH-USD) and XRP (XRP-USD) round out the list of the five most-traded ruble-denominated crypto trades.
These investments make plenty of sense. How? Ethereum is the second-largest crypto, and has vast uses in decentralized finance. Ripple’s XRP is an ISO 20022 compliant currency that is often used for international remittances. This makes it an ideal cryptocurrency for sending money to friends and family abroad.
Why does this matter? Well, investors are constantly seeking out low-risk, high-reward investments. This desire has been heightened lately as recession fears in the U.S. drive investors toward safer investments. So, based on what cryptos we see Russians and Turks buying in the face of fiat currency volatility, we can see which coins and tokens benefit most from inflation. This is something to keep an eye on in the days and weeks ahead.
On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
