The current Russia-Ukraine war has dramatically increased crypto participation in Ukraine in the last month. It pushed the prior threshold for cryptocurrency-related activity in Ukraine higher. The European state has received almost 14.2 million crypto contributions to fund its military strength. As a result, the use of cryptocurrencies has undoubtedly increased due to this rush of digital tokens.
According to statistics, crypto exchanges in the country have seen a jump in transaction volumes. At the same time, demand for digital currencies like Bitcoin and Tether has pushed their value higher versus the Hryvnia (or sometimes gryvnya, the national currency of Ukraine).
Ukraine ups its bitcoin game
In response to the recent influx of digital currency into Ukraine to improve the country’s financial crisis, the Ukrainian government set a limit on digital cash withdrawals of 100,000 Hryvnias (about $3,350). The country made this move to try to stem the outflow of cash. As a result, this action has aided in promoting cryptocurrency trading in the nation.
The trading volume of Ukraine-based crypto exchange Kuna, which offers trades in Hryvnia and Russian Ruble, increased dramatically after the announcement on February 24. Its trading volume has allegedly climbed from $1.4 million to $4.8 million, with the majority of trading pairs in Hryvnia (UAH). This is the platform’s most significant increase since May 2021.
BTC on Kuna traded for as much as $42,106 at one time, which was $3k more than it was on other crypto exchanges.
Tether was also trading hands for as much as $1.08, with an average price of $0.99 on other markets. As per the reports by Localbitcoins.com, Bitcoin traded in Ukraine for as much as $43,480 per coin.
This indicates that, when the local currency falls to new lows, there is a greater demand for cryptocurrency in the nation. “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 minimal supply at the moment.”
Several people showed their gratitude towards crypto during these challenging times. When their entire cash flow was stuck, only crypto came to the rescue.