Hardware Crypto Wallet Sales In Russia Decline Amidst Easing Currency Restrictions

Sberbank

According to a report that quotes top marketplaces, interest in hardware crypto wallets amongst Russian users is declining.

These wallets enable cold storage of digital assets and their popularity surged this year after the invasion of Ukraine, but their sales volumes have declined by almost half.

Hardware crypto wallets

Market participants have said that retailers who were selling hardware crypto wallets have a lot of stock left over because their sales numbers have gone down.

Earlier this year, there had been an explosive demand for these products after Moscow had decided to send its troops into neighboring Ukraine.

During the spring months, a large number of Russians had been looking for cold storage devices to keep their crypto assets.

This was primarily because of the sanctions that were imposed on them by Western nations due to the conflict with Ukraine and the Bank of Russia had also imposed currency restrictions.

Likewise, a number of Russian citizens who decided to relocate to other countries had also decided to take their savings along in the form of cryptocurrencies.

The sales figures

As per statistics, Wildberries and Ozon marketplaces had seen hardware wallet sales hit a record high of about 16.5 million rubles back in May, which is around $275,000.

But, the number fell by half in August, as the hardware crypto sales went below 8 million rubles, which means less than $135,000.

Ozon, which is also called the ‘Amazon of Russia’, said that the first half of the year had seen the number of hardware crypto wallets sales increase by five times, as opposed to the same period last year.

M.Video-Eldorado, an e-commerce platform, also said that sales had hit their peak back in March. Citilink, an online tech store, also introduced a hardware wallet at the end of June.

Tangem had developed the wallet in question and its sales had hit their peak in July.

The decline

According to experts, the decline in the sales of these hardware crypto wallets has happened because of the Bank of Russia’s decision to ease restrictions imposed on cross-border crypto transfers.

They also said that people who had wanted to transfer their crypto abroad had likely already done so, hence resulting in a drop in sales.

The falling cost of crypto wallets has also had an impact on the sale volumes, which was due to an appreciating US dollar and reduced demand.

Estimates have indicated that there was a decline of three times in the average price of Safepal products between April and September.

Meanwhile, there was a two-fold drop in prices of wallets from Trezor and Ledger, while a quarter drop was seen in the price of Tangem.

Wildberries had also confirmed the trend. The current law in Russia does not restrict the use of crypto wallets because there is no comprehensive regulation that exists in the country as yet.

If there is an improvement in the crypto market, there is a chance that demand for crypto wallets could also improve.