As Russia's invasion of neighboring Ukraine continues to wreak havoc on the two nations, UN reports highlight at least 536 civilian casualties in Ukraine. In addition to political tensions, the nation's financial landscape has been significantly affected; however, cryptocurrencies are turning into Ukrainians' saviors in these troubled times.
Bitcoin for Rubles
With the Russian and Ukrainian markets out of control, a large chunk of their population seeks financial reassurance in cryptocurrencies. The effects of this turmoil could be seen in the skyrocketing rewards for users looking to trade RUB for Bitcoin (quotation BTC) through exchanges.
Due to fears of supply disruptions, commodity prices rose as cryptocurrencies, the S&P 500 and NASDAQ plunged into a technical correction. However, markets recovered by Friday, with Bitcoin closing Sunday night down just 2,7%.
At press time, the price of BTC was hovering at $ 43.345, noting a 6,01% rise on the last day.
That said, the data showed that Bitcoin is trading at a 6% premium on Binance's Ukrainian hryvnia (UAH) market as demand for cryptocurrencies surged soon after the invasion of Russia. The premium measures the difference between the price of Bitcoin on the UAH markets versus the USD markets.
Furthermore, BTC trading volumes in RUB have risen to their highest since last May. Those based in UAH of Ukraine reached a level last seen in October 2021. Clara Medalie, head of research at Kaiko, said:
"The trend follows a wave of sanctions against Russia, which has disrupted the forex markets and plunged the ruble to an all-time low against the dollar."
The rewards for Tether and USD are skyrocketing
Bitcoin wasn't the only crypto asset that traded with a high premium; the Tether premium has risen to a maximum of 4 months while the asset remains volatile.
The country's cryptocurrency exchange Kuna has seen an explosive increase in trading volumes, as highlighted in a previous article. Conversely, other cryptocurrency exchanges have seen a massive increase in transactions.
The increase in demand was so important that people were even willing to pay a premium on stablecoin and Bitcoin and Ethereum coins. In particular, a premium on an asset reflects the high demand for the asset that often exceeds its supply.