The “real” daily volume of bitcoin (BTC) surged to levels not seen in three months amid the Russian invasion of Ukraine.
According to the latest weekly update from analytics firm Arcane Research, BTC’s real daily trading volume surpassed $10 billion last Thursday (February 24, the first day of the invasion), the highest daily volume recorded since December 4.
The company cited “new crypto narratives” that have played a leading role in the ongoing crisis, such as the rise of crypto in Ukraine coupled with increased demand compared to the Western bloc and Russia’s imposition of “the tightest capital controls in decades.”
Strong pressure from investors who want to risk abstain on Feb. 24 may also have contributed to the daily increase in BTC volume, with the price dropping 10% that day.
The term “actual trading volume” refers to data obtained from exchanges that are considered to be recognized and not engaged in money laundering. In this case, Arcane Research got its data from the Bitwise 10 exchanges (which consist of names like Coinbase, Kraken, Poloniex, and Binance) along with LMAX and FTX.
True BTC Daily Volume: Arcane Research
By comparison, crypto data aggregators such as Coingecko, which pulls data from over 500 exchanges, had about $25 billion in BTC trading volume on Feb. 24. The actual BTC Messari volume chart (which includes a number of additional exchanges) paints a similar picture to Arcane, recording an increase in volume to around $11.6 billion last Thursday.
Since February 24, actual daily BTC volume has dropped to around $7.5 billion for March. 1 according to Masari. at
Arcane Research also highlighted that the price of BTC posted its biggest daily percentage gain in over a year on February 28, with the price jumping 14.5% in 24 hours. The company attributed this growth in part to the adoption of Russian and Ukrainian crypto (although the actual size is relatively small globally), as well as increased speculation about crypto use cases in the midst of the current Russian invasion:
Investors assume that cryptocurrencies will become increasingly important in apolitical and untrustworthy money in times of growing geopolitical uncertainty, conflict and capital controls. This speculation may have contributed to the 15% increase in the price of bitcoin over the past seven days. ”
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Encryption in Ukraine and Russia
Due to severe disruption in the services and financial services markets in both Russia and Ukraine, there has been an outflow of the effects of the use of cryptocurrencies.
The report provides data for the past month, which show a significant increase in cryptocurrency purchases by citizens of Ukraine.
While the major Russian invasion began on Feb. 24, daily purchases of Tether (USDT) stablecoin on Binance for Ukrainian hryvnia (UAH) increased from around $2.5 million to almost $8.5 million by Feb. 25. While the BTC and UAH charts showed a similar trajectory. , increasing from $1 million to $3.0 million over that time.