Con Metrics data shows that the volume of Ukrainian national currency, hryvnia on the crypto market, has reached record levels. The crypto community has also rallied to raise $30 million for Ukraine and its citizens. This action comes just days after Russian troops invaded Ukraine.
Many Russian and Ukrainian citizens have lost their access to traditional financial systems due to the ongoing conflict in Eastern Europe. To fund their financial needs, many Ukrainians now use digital currencies like Bitcoin (BTC). Because crypto is not subject to censorship, it can be easily moved across international borders. Additionally, digital currency does not require traditional financial intermediaries.
Coin Metrics has found that the trading volume for hryvnias in the crypto market has increased dramatically. Coin Metrics also states that this development occurred in less than a week.
Record highs have also been set for the amount of Ukrainian hryvnia that is quoted on Binance, LocalBitcoins and other digital currencies. Many Russians have begun to channel their money to crypto after the ruble crash.
Analysts believe that Russia’s economy could contract by as much as 5% in the coming year due to the renewed sanctions.
