- DappRadar, an analysis and Dapp discovery platform, has released a report on the impact on the crypto market as the war situation deepens between Russia and Ukraine.
- DappRadar says the blockchain ecosystem can provide an alternative payment gateway for millions in Russia and Ukraine who are being denied other financial methods.
- The report also noted the increased demand for cryptocurrencies in both Ukraine and Russia.
DappRadar, a Dapp discovery, and analysis platform has published a detailed report on the impact of the war between Russia and Ukraine on the crypto industry. According to the report, blockchain-based solutions will have an important role to play as the war continues while the sanctions on Russia tighten.
Economic’s Role Of These Countries
In the beginning, the report assesses the economic roles of both Ukraine and Russia on a global scale. Ukraine is the leading source of wheat, while Russia is among the most significant energy and commodities producers in the world. Until now, European nations have consumed half of Russia’s oil and powered a third of total oil consumption in Europe.
At present, Russia is banned from exporting its oil to the U.S.; meanwhile, Europe is also cutting down its dependency on the country’s natural gas by 66%. As a result, oil prices have increased, which as per the reports, will have an impact on proof-of-work blockchains, including Bitcoin.
On the other hand, the West has also put sanctions on the Russian banks. In addition, around 65% of the country’s $650 billion in reserves were frozen.
The country is also expelled from the SWIFT payment messaging system. Besides, leading Payment providers such as PayPal, Mastercard and Visa have stopped their services in Russia.
DappaRadar has stated that millions of people in Russia and Ukraine, who have been denied the other financial methods, can turn to the blockchain system for another payment gateway. In particular, the report notes the use of stablecoin, which can act as a hedge against the high inflation in Russia at the moment.
Interestingly Strike, a Bitcoin payments firm, has purchased a Tether compatible remittance service to Argentina for carrying a similar purpose.
On the other hand, Ukraine has leveraged crypto assets to raise funds to support its people.
According to Elliptic, a blockchain analytics firm, the Ukrainian government has raised more than $63 million in crypto assets.
Crypto’s Role In Current Turmoil Until Now
The report also acknowledges the notable rise in cryptocurrency demand in both Russia and Ukraine since the onset of war. The purchase of Bitcoin with hryvnia almost doubled in Ukraine, while it nearly tripled in Russia. This has led Bitcoin price to around $38,000 even though the crypto market has been trapped in a month-long bearish trend, claims DappaRadar.
Further, the report states that the centralized banking system will be even less trustworthy, resulting in the wider and rapid adoption of digital assets.
A global investment bank, Credit Suisse, in an analysis last week stated that the U.S would soon face the heat of inflation while the flagship cryptocurrency will profit from the current situation.
Taip pat skaitykite: Rusai, iškraunantys kriptovaliutų turtą JAE
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Source: https://www.thecoinrepublic.com/2022/03/15/how-is-the-on-going-war-between-russia-and-ukraine-impacting-the-crypto-market-reveals-dappradar/