The ongoing war in Ukraine has pushed crypto-related activities a notch higher in the country.
According to available 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 push the value of these assets higher against the Hryvnia.
The National bank of Ukraine had imposed a limit on daily cash withdrawals to 100,000 Hryvnias ($3,350) to control the outflow of cash from the country.
This move has, however, become a major catalyst for 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 spike in its trading volume.
Per data from Coingecko, its volume increased from $1.4 million to $4.8 million, with most trading pairs being in Hryvnia (UAH). This is the highest surge the platform has seen since May 2021.
Demand for Bitcoin, Ethereum and Tether rises
Digital assets like Bitcoin, Ethereum, and Tether also witnessed an increased demand which invariably pushed their values higher than it is across the world.
At some point, BTC on Kuna was trading 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 $0.99.
Data from Localbitcoins.com also shows that Bitcoin was being sold for as high as $43,480 per coin in Ukraine.
This shows 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.”
This statement is considerably true as several Ukrainian have revealed how their crypto holdings have come to their rescue during this time of their need.
Ukraine, before this war, was one of the few countries with a pro-crypto attitude. The government recently legalized crypto as part of its plan to give investors and businesses access to digital assets.
After the invasion, several NGOs and volunteer groups in Ukraine have also received crypto funding. The government has tweeted that it now accepts crypto donations for its cause.