The present Russia-Ukraine conflict has significantly raised crypto engagement within Ukraine in the past month, pushing the previous bar on cryptocurrencies-related activities within Ukraine. By today, the European state has officially received about 14.2 million donations in cryptos to support its military power, and with this influx of digital tokens, the utilization of cryptocurrencies has inevitably shot up.
The Rise Of Crypto Trading: Cash Withdrawal Limits
According to statistical data, crypto exchanges in the country have recorded a spike in their transaction volumes; at the same time, demand for digital assets like Bitcoin and Tether has helped surge the value of these assets higher against the Hryvnia (or sometimes gryvnya, the national currency of Ukraine).
In consideration of the recent stream of digital currency going in to aid Ukraine’s financial situation, the Ukrainian government imposed a ceiling on digital cash withdrawals to 100,000 Hryvnias (or $3,350) in a bid to rein in the outflow of cash from the country. It must be noted that this move has, however, been instrumental in promoting crypto trading in the country.
Immediately after the declaration on February 24, Ukraine-based crypto exchange Kuna, which provides trades in Hryvnia and Russian Ruble, saw a major spike in its trading volume. Its volume has reportedly increased from $1.4 million all the way to $4.8 million, with most trading pairs being in Hryvnia (UAH). This is the highest upsurge the platform has witnessed since May 2021.
BTC, Ethereum And Tether Are On The Rise
Higher demand for Bitcoin, Ethereum, and Tether, especially over the past week, has indiscriminately raised their values to the moon across the world. But this trend is particularly evident in Ukraine, where crypto exchange Kuna traded Bitcoin for as high as $42,106 – which is $3k higher than it was across other crypto exchanges. Tether was also exchanging hands for as high as $1.08, while its average price on other exchanges was actually lower at $0.99.
Across the globe, BTC rebounded about 8% on Friday, thereafter, it went down again, not even reaching the $40k mark again. Meanwhile, data from Localbitcoins.com also shows that Bitcoin was being sold for as high as $43,480 per coin in Ukraine. Other than this, altcoins have experienced similar enhanced price fluctuations during the week, Binance Coin, Cardano, Avalanche, Polkadot, and Dogecoin all sliding in the green. Terra (LUNA) was among the best performers this week.
This upset of bitcoin prices portrays that there is an increased demand for crypto in the country as the local currency falls to record lows. According to the founder of Kuna Exchange, Michael Chobanian, “the majority of people have nothing else to choose apart from crypto. People have cash, and they want to buy crypto, but there is a very limited supply at the moment.”
One such Ukrainian, who was rescued by the graces of cryptocurrencies noted his experience on Twitter as follows,
My Ukrainian credit cards don't work anymore. I'm safe physically in Kazakhstan, but all my savings are gone.— ARTYOM FΞDOSOV 🇺🇦 (@usleepwalker) February 25, 2022
Crypto is the only money I still have, and today I can say without exaggeration that $BTC, $ETH, and #NFT are going to save my life while I can't come back home.