War coincides with Bitcoin’s highest ‘real’ volume since early December

The volume of Bitcoin (BTC), the “real” daily Bitcoin (BTC), jumped to levels not seen in three months during the Russian invasion.

The latest weekly update report by blockchain analytics firm Arcane Research shows that real daily BTC trading volume soared to over $10 billion on Thursday (Feb. 24), the first day of the invasion. This is the highest daily volume since Dec. 4.

According to the firm, “new crypto narratives” have emerged as a result of the ongoing crisis. These include crypto fundraising in Ukraine and rising demand in relation to Russia’s strict capital controls.

Strong selling pressure by investors seeking to reduce risk on February 24 could also have contributed to the rise in daily BTC volume. The price fell 10% that day.

Real trading volume refers to data that is sourced from reliable exchanges and are free from wash trading activities. Arcane Research pulled the figures from Bitwise 10, which includes names like Coinbase, Kraken and Poloniex, as well as LMAX (and FTX).

Real daily BTC trading volume: Arcane Research

Comparatively, Coingecko and other crypto data aggregators like it had BTC’s trading volume at approximately the $25 billion mark on February 24. Messari’s real BTC volume chart, which includes a number additional exchanges, paints a similar picture as Arcane’s. It shows a spike of around $11.6 billion in volume last Thursday.

The daily real BTC volume has fallen to $7.5 billion since February 24, according to March. According to Messari data. Th

Arcane Research highlighted that BTC’s price saw its highest daily percentage gain in more than a year on February 28, with the price climbing 14.5% in 24 hours. The surge was attributed to crypto adoption in Ukraine and Russia (although it is still relatively low in global terms), as well as increased speculation about crypto’s potential uses in the face of the Russian invasion.

“Investors speculate that crypto will be more important apolitical or trustless money during a time of increasing geopolitical uncertainty and conflict.” The 15% rise in Bitcoin prices over the last seven days may be due to this speculation.

Similar: Uniswap creates interface to convert altcoins into ETH donations in Ukraine

Russian and Ukrainian Cryptocurrencies

There have been many flow-on effects from the disruption of financial services and markets in Russia and Ukraine that has led to the increased use of cryptocurrency.

According to the report, data from the last month showed a significant increase in crypto purchases by Ukrainian citizens.

The total amount of daily Tether (USDT), stablecoin, purchased on Binance using the Ukrainian hryvnia(UAH) rose from $2.5 million to $8.5 million between February 23 and 24, when the Russian invasion was fully underway. The BTC/UAH chart displayed a similar trend, with a rise of around $1 million to $3.0million in that time period.

Daily UAH cryptocurrency purchases: Arcane Research

Similar events occurred in Russia, where Ruble-based USDT purchases rose from $15 million on February 21 to $34.94 million by Feb. 28. Daily Bitcoin purchases increased from less than $5 million to $15 million on February 21, before dropping back to the $12 million range.