Bank of Russia Reveals Citizens Hold $6.8B in Crypto on Exchanges Despite Market Volatility

Despite significant market fluctuations, Russian citizens still hold an impressive $6.8 billion in cryptocurrency on centralized exchanges, according to a recent report by the Bank of Russia.

This figure represents a 15.8% decline from March 2024, but it still reflects the continued strong presence of Russian investors in the crypto space.

Bitcoin remains the dominant cryptocurrency, accounting for 69% of the total holdings, followed by Ethereum at 21%, and stablecoins making up 10%.

The drop in exchange balances is attributed to reduced market activity, with the central bank noting that trading volumes have declined in recent months. However, Russian investors continue to be active participants in the broader crypto market. Web traffic to crypto exchanges in Russia grew by 56.5%, with Russian users now representing 7.5% of global visits. In addition, crypto asset flows linked to Russian investors increased by 18%, reaching approximately 4.8 trillion rubles ($50 billion) in Q3 2024.

Meme Coins Draw New Users, But Not Significant Investment

The Bank of Russia’s report also touched on the rising popularity of meme coins, which have attracted new users to the crypto market. However, the central bank noted that these assets, despite their growing following, do not play a major role in large-scale investments due to their relatively small market capitalization compared to the broader crypto market.

"Meme coins and similar mini-apps attract new users to the crypto asset market, but given the market capitalization of these projects relative to the broader crypto market, they do not serve as a significant channel for the inflow of substantial funds from citizens," the report stated.

Surge in Web Traffic to Crypto Exchanges

The report follows a surge in web traffic to crypto exchanges in Russia, with MegaFon, one of the country's largest telecom providers, reporting an 8% increase in visits to these platforms. This uptick is largely attributed to rising Bitcoin prices and regulatory changes within the country. The trend mirrors global growth, with traffic to the top 20 crypto exchanges increasing by 8% to 10% in November compared to October.

Some exchanges have seen particularly sharp increases in traffic. For example, Deribit experienced a 126% spike in visits in early November, while platforms like HTX (formerly Huobi) and KuCoin saw increases of 24% and 23%, respectively. Meanwhile, other platforms such as Gate.io, Upbit, and Kraken reported declines in web traffic during the same period.

Despite the fluctuations in market activity, Russian investors continue to be active in the crypto space, with growing web traffic and significant crypto asset flows indicating ongoing interest and participation.