After the increasing economic sanctions on Russia, it was anticipated that the demand for cryptocurrencies will increase. The narrative was building that the Russians will find a way out through the use of crypto for transactions and payments.
There were also demands for crypto-based restrictions on Russia. However, several exchanges denied the request of Ukraine to ban Russian users, as it goes against the concept of crypto.
The crypto market saw a boost amid the speculations of increasing demands. Leading cryptocurrency, Bitcoin went up by over 12% at the start of the week. Nonetheless, there was a rise in interest from Russian-based investors as well. However, the latest data and reports suggest that it is not the case. Consumers and investors are not rushing on major exchanges to trade crypto.
Statistics show stalling crypto volumes in Russia
As of March 3, the value of crypto activity in Russia is only at around $34 million. It is down from $70 million recorded on February 24. The latest recorded value is only a fraction of the all-time high of $158 million observed on May 20 last year. Analysis shows that average bitcoin buying is also only at 210 BTC tokens since the last week.
There is an argument that Russians are preferring peer-to-peer trading because of the posed restrictions and risks. However, even in this case, considerable volumes should be seen across blockchains. The military operation of Russia towards Ukraine is taking place. But it has not influenced the Russian crypto volume.
As a result, the cryptocurrency market is also lacking momentum. At the time of writing, Bitcoin has fallen below the $41,000 mark. The rest of the market is also posting red candles, as the bubble of bullish predictions is bursting.
On the other hand, the Ukrainian government is receiving large funds and donations to its official crypto addresses. Ukraine is accepting donations in Bitcoin, Ethereum, Polkadot, and Dogecoin. Several non-governmental authorities are also receiving donations to support the army. According to an estimate, Ukraine has received over $50 million in donations since the start of the war.
The Ukrainian government is also setting up crypto wallets. It also promised an airdrop to reward its donors, however, the airdrop was canceled due to some irregularities. Nonetheless, the crypto market has remained quite active in light of the ongoing war between Russia and Ukraine. The events of the next few days will be critical in setting the tone of the market.