Wagner Uprising Leads to Increase in Ruble-Tether Trading Activity During Political Unrest

• The trading value of Tether has been maintained at the $1 level.
• This is not the first instance of USDT experiencing a significant rise.

The paramilitary organization Wagner revolted against the military authorities in Moscow, prompting Russians to exchange their rubles, the national currency of Russia, for the dollar-pegged cryptocurrency over the weekend. Consequently, the total trading volume between rubles and the stablecoin Tether (USDT) escalated from $4 million on Saturday to $15 million on Sunday.

The trading value of Tether has been maintained at the $1 level. The dollar’s reputation as a secure asset has long made Tether a preferred option for individuals seeking refuge from their domestic currencies. People often turn to cryptocurrencies during periods of heightened political or economic uncertainty.

The increase in Tether’s value coincided with Wagner’s military leader, Yevgeny Prigozhin, seizing control of the city of Rostov-on-Don in southern Russia. Additionally, the military group has advanced northward towards Moscow in what appears to be a coup attempt against Russian President Vladimir Putin.

Russia’s Wagner Rebellion

Prigozhin has been engaged in a struggle for power with the military’s top officials for several months, blaming them for the fatalities of his troops in eastern Ukraine. He has repeatedly accused them of inadequate funding for his forces and of hindering progress with bureaucratic obstacles while taking credit for Wagner’s achievements.

On June 24, as Prigozhin accused Moscow’s military leadership of ordering attacks on Wagner’s camps and resulting in the deaths of several soldiers, his anger seemed to reach a critical point.

The Wagner military group’s leader has released multiple statements asserting that he and his forces have entered Rostov-on-Don and taken control of its military facilities.

Significant Increase in Ruble-Tether Trading Volume

Reports indicate that Yevgeny Prigozhin has reached an agreement with Putin to exit Russia and cease his advance into Belarus. Following this, the trading volume between rubles and Tether has decreased once more, falling to around $3 million since the conflict concluded.

This is not the first occasion that the trading volume of rubles and Tether has seen a substantial increase. In late February, during the conflict between Russia and Ukraine, trading activity between the ruble and Tether experienced a notable surge.

The trading volume has surpassed $37 million, according to Kaiko, which collects trading data on rubles and USDT from the cryptocurrency exchanges Binance and Huobi after several exchanges removed the ruble due to global sanctions on Russia. Clara Medalie, Kaiko’s research director, noted that overall volumes have significantly declined since the invasion last year.

The shift towards the stablecoin has become a significant trend in nations facing ongoing crises. It directly influences the value of their national currencies. Furthermore, the Russian ruble rapidly depreciated following Putin’s announcement of the invasion of Ukraine. These developments are occurring with the upcoming BRICS summit on the horizon. Following Putin’s surrender to the ICC, the BRICS Summit is scheduled for August in South Africa. The rising interest in cryptocurrencies is anticipated to be a topic of discussion at the summit. The pressing question now is whether Putin will participate in the BRICS summit.

The crises in various countries have significantly impacted the trading of stablecoins. This sharp rise in trading activity reflects a growing distrust in the stability of the ruble amid ongoing political unrest. Additionally, the increase in trading volume between rubles and Tether underscores the potential of cryptocurrencies to act as a safe haven for individuals seeking stability during uncertain times.

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