Chainalysis has monitored $70M in crypto contributions to Ukraine. The amount might go up to $200 million.
A year after the outbreak of conflict in Ukraine, the number of crypto contributions continues to rise as crypto continues to flood in.
On the one-year anniversary of the conflict in Ukraine, Chainalysis, a blockchain analytics startup, published a study on the role of cryptocurrencies.
As of February 2023, it was reported that about $70 million in crypto contributions have been committed in support of Ukraine.
The bulk of contributions was made in Bitcoin and Ethereum, according to the study. ETH contributions accounted for around 41% of the total, while Bitcoin donations accounted for approximately 32%. Tether (USDT) was the third most often given cryptocurrency, accounting for 16.5% of the total.
Despite global authorities and bankers wanting to destroy the cryptocurrency business, it continues to serve valuable functions. It offers several advantages for donation reasons since it is quicker and less expensive to transmit money across international boundaries than with conventional means such as banks.
In addition to cryptocurrencies, there have been contributions of nonfungible tokens (NFTs). The sale of a Ukrainian flag NFT by UkraineDAO garnered $6.5 million for the nation’s military efforts. Chainalysis said that they were modest in comparison to fiat contributions, but:
“These reflect the generosity of crypto fans worldwide and Ukraine’s readiness to embrace a diverse range of digital assets.”
In developing nations such as Ukraine, crypto has the potential to serve as a dependable store of wealth, according to the report. Also, it may increase financial independence and cut international transaction expenses.
“In addition to aiding war operations, bitcoin contributions are anticipated to encourage greater usage and boost an economy otherwise crippled by the conflict.”
According to the Financial Times, the sum of donated cryptocurrency might be far more. Citing Elliptic analysis, the publication said that more than $200 million worth of cryptocurrency had been donated to pro-Ukraine groups.
“Ukraine placed a large wager on cryptocurrency by providing contribution addresses within hours after the invasion, and it paid off,” an Elliptic analyst told the publication.
Recent reports indicate that Ukraine has purchased military equipment using crypto. In addition, according to the country’s deputy digital minister, sixty percent of suppliers might accept crypto in exchange for fight needs.
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