The data showed that trading volumes for bitcoin (BTC) and altcoins increased on the major Ukrainian cryptocurrency exchange following the Russian invasion.
According to monitoring source CoinGecko, on February 24, the size of Kona nearly tripled to over $4 million.
Encryption on the radar of Ukrainians
When the armed conflict with Russia began, it immediately affected the banknotes of both countries.
While the Russian ruble suffered much more, the Ukrainian hryvnia also fell, hitting $30 to the dollar, a new low.
Ukraine, which just this month finally ratified a cryptocurrency legalization law after a lot of volatility among lawmakers, unexpectedly saw no surge in interest in alternatives.
The effect was evident in the seven-year-old Kona, which was under $1 million on Feb. 21 but nearly $4.1 million three days later.
According to data from CoinGecko, the heat has already begun to subside after the initial rally, and this coincides with the stability of fiat exchange rates against the US dollar and other major currencies.
Kuna’s own prices were less obvious as they show a strange spread on both sides of Bitcoin’s spot price. At the time of writing, BTC/USD is trading at $38,300 on Bitstamp, with USD/Kuna above $40,000.
On the other hand, Stablecoin Tether (USDT) was worth $37,800 per bitcoin.
Kuna cryptocurrency trading volume with popular pairs (screenshot). Source: CoinGecko
The Central Bank tightens foreign exchange freedom
Meanwhile, this week, a separate argument for entering bitcoin came from government currency controls.
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On Wednesday, the National Bank of Ukraine began restricting cash, limiting cash withdrawals to hryvnia 100,000 ($3,353) per day, as well as banning purchases abroad and foreign currency withdrawals.
The Facebook post confirmed that the bank was also trying to stabilize the hryvnia.
Meanwhile, on Thursday, Russia’s Central Bank began intervening in the foreign exchange markets to prop up the strengthening ruble, with several moves over the past 24 hours.