Ukraine saw a surging interest in cryptocurrency after Russia wages war against the country. The local currency hryvnia fell to an all-time low amid the concerning geopolitical situation.
Kuna, the top cryptocurrency exchange in Ukraine, observed a swift increase in trading volume for bitcoin and altcoins. On February 21, the total volume at Kuna was recorded below $1 Million. Whereas, only three days later on February 24th, the volume reached $4 Million.
Impact of war on Fiat Currencies:
The war between Russia and Ukraine had an impact on the local currencies of both countries. Russian ruble lost significant value in the days leading up to the Ukrainian invasion. Ukrainian Hryvnia also became 30 per dollar.
Ukraine legalized cryptocurrencies in the country just a few weeks before the war. People have shown much interest in Crypto which lead to the ratification of the currency as a legal tender. Once the hryvnia went into hot waters, the populous turned to Bitcoin.
Also Read: Bitcoin Drops With Russia Sprinting for War
Bitcoin and Altcoins serve as alternatives to local currencies. The decentralized nature of bitcoin makes it more viable during crisis situations. You don’t need banks or any other physical entity to issue your money.
Crypto trading volume on Ukrainian crypto exchanged jumped 200% in the past 2 days following the war. However, the bitcoin price has remained fluctuating.