With foreign sanctions imposed against Russia due to its military invasion of Ukraine, the government has imposed a number of currency restrictions in the country. This has driven up the demand for hardware crypto wallets significantly this spring, as these can help in storing digital assets securely. According to a media report, Tangem and Ledger have turned out to be the most popular choice amongst people.
Purchases of hardware wallets go up
As compared to previous periods, there were eight times more purchases of hardware wallets by crypto users in Russia from March to April. This information was communicated by representatives of wallet developer Tangem, the Ozon marketplace, and M.video-Eldorado, the retail chain.
According to the reports, the most popular options are Tangem, which provides hardware crypto wallets in the shape of a bank card, and Ledger, which has wallets that look like a USB stick. Last year in the fall, M.video-Eldorado had begun selling crypto wallets to its clients. Currently, the retailer is offering single and multi-currency wallets of both Ledger and Tangem.
The retailer noted in 2022 that these devices had experienced a significant increase in demand, as the first quarter saw sales of these hard crypto wallets increase by eight times.
Tangem also had something to say about the matter. The company stated that since the beginning of the year, its products had been able to see strong demand because it has introduced some very affordable options in the market. This was also confirmed by M.video-Eldorado, as the chain had begun selling these affordable products in March and had seen an excellent response.
Likewise, Ozon asserted that the spike in demand was because of a wide range of products available. There had been a seven-fold increase in January in terms of items available and in comparison, the stock in June had turned out to be six times higher. The online marketplace also said that the currency restrictions imposed in light of the Western sanctions by the Bank of Russia had also played a role in the rise in demand.
Mikhail Burmistrov, the chief executive of Infoline-analytics, stated that there was another reason why the demand for hardware crypto wallets had increased. He said that the outflow of IT specialists was also one of the reasons why people were looking for these crypto wallets.
He stated that people had invested in crypto and were buying crypto wallets to store these digital currencies and transfer their savings abroad. Apart from that, Ledger wallets have also recorded a surge in global demand by almost five times and this is because of the collapse of the Terra blockchain that wiped out $60 billion from the market, the extremely volatile conditions of the crypto market, and the liquidity and financial problems plaguing crypto lenders, such as Celsius Network.
This has created a great deal of uncertainty in the market for now and people are keeping their digital assets secure, as they have fallen in value significantly. Plus, many people are also buying the dip and need proper storage.