- Crypto trading rose by 107%in Ukraine since the conflict began
- Combined Russian-Ukraine crypto trading in USDT and BUSD pairs has attracted an average of US$80m a day at times.
A recent report issued by Financial Times highlights how the Russian invasion of Ukraine may help mainstream crypto adoption.
The report further explains how crypto donations made to Ukraine have proven instrumental in influencing the crypto industry and the attitude of the masses towards the digital asset market.
Crypto Philanthropic Efforts To Ukraine May Boost Cryptocurrency Adoption
Recently, the Ukrainian authorities took to Twitter to urge global communities to donate cryptocurrency to help the country fight the Russian invasion. The authorities further stated how the money received via crypto will be utilized to bolster the Ukrainian army and at the same time help the country fortify its geographical frontiers and defense.
In response to the said appeal, the Ukrainian authorities received a staggering amount of $106 million in crypto, forming a rather unusual predicament in the entire history of the world, where virtual currencies took the center stage and helped a war-ridden country to bolster its defense.
According to a recent report issued by Financial Times, the war in Ukraine could be an accelerant for the crypto sector.
“Russia’s invasion of Ukraine is the first major event where cryptocurrencies are part of the equation,” Bridgewater hedge fund told clients this week. “These shorter-term dynamics are occurring alongside structural changes in cryptocurrency markets that we believe are self-reinforcing, as adoption by key institutional investors increases and the surrounding ecosystem deepens.”
Additionally, Ukraine, which is already accredited as a “hotbed” for crypto activity and tech talent, has the highest crypto usage per capita in the world in 2020 and the fourth highest in 2021, which is perhaps one of the reasons that are contributing to the accelerated crypto activity in the region. Moreover, the flooding of crypto donations and their transparent implementation by Ukraine can also be a possible driver that may assist crypto to attain global coverage.
A recent blog post by CoinShares highlights another use case driving crypto popularity in Ukraine. Per the blog:
“When times are desperate and where banks do not function correctly, it is often highly risky to transport physical cash. This is the case for many Ukrainians and Russians at present, consequently, crypto assets are seen as an attractive alternative. This has been a concept rarely tested until now, where we have seen Ukrainian crypto trading rise by 107% since the conflict began. Furthermore, the collapse of the Ruble and the increasingly dysfunctional banking system in Russia has prompted a 231% rise over the same period.
The report further observed that countries with geopolitical instability tend to have higher growth in Bitcoin volumes.
“We believe cryptocurrencies are being used as a hedge against falling domestic currencies and for their portability, particularly important for Ukrainian refugees, allowing them to cross borders without the risk of confiscation/theft of their assets.” As reported by CoinShares Blog.