- Ukraine reportedly received $70 million worth of cryptocurrencies from donations to support its war against Russia.
- The country ranked third on the Chainalysis’ 2022 top 20 global crypto adoption index.
- The war between both countries in Eastern Europe has now been on for a year.
Ukraine’s spirit and vigor still live on as it continues to battle its opponent—Russia—in a war that has now lasted a year.
On February 24, precisely a year after the war between Russia and Ukraine began, Chainalysis revealed a blockchain data analysis platform report announcing that the world has since assisted Ukraine in the fight by donating millions in cryptocurrencies.
According to Chainalysis, Ukraine has received over $70 million of crypto, with most funds in ETH (Ether). Ukraine was said to have received $28.9 million in ETH, $22.8 million in BTC, and $11.6 million in Tether.
Chainalysis announced that due to the country’s quick adoption of cryptocurrencies and blockchain technology, it was easy for Ukraine to make a swift recovery when wounded or needed to restock its military equipment.
The donations were made in cryptocurrencies to the embattled country because its Central Bank allegedly declared a limit on the transfers of foreign currencies in and out of the country.
The blockchain data analysis platform also noted that Ukraine received NFTs (non-fungible tokens) from UkraineDAO’s auction of a Ukrainian flag NFT sold for $6.1 million.
The cryptocurrencies donated to Ukraine aided the country, as 80% of the recorded $70 million was sent to Ukraine in the first few months when Vladimir Putin of Russia invaded Ukraine in 2022. The Ukrainian army quickly utilized the funds the world nations donated by purchasing new armor, clothing, medicines, vehicles, and military equipment.
Russia’s Use of Cryptocurrencies During the War
Russia was also not exempted from using cryptocurrencies during its war with Ukraine. The country’s pro-Russian military groups utilized cryptocurrencies by crowdfunding their war capabilities. This included spreading misinformation, sponsoring military expenses, and creating pro-invasion propaganda.
“Approximately five months after the war between Russia and Ukraine began, we noticed 54 volunteer groups committed to crowdfunding, […] at the time, we discovered those organizations had received about $2.2 million in donations, a few which arrived before the invasion,” Chainalysis reported.
Impact of Cryptocurrency in Ukraine
Since the outbreak of the war, Ukraine has fully adopted blockchain technology. A September 2022 report by Chainalysis ranked the Eastern European country as third on the list of the top 20 countries in the 2022 global cryptocurrency adoption.
In an interview with Yahoo Finance, the co-founder of UkraineDAO, Alona Shevchenko, stated that due to cryptocurrencies, the country could quickly fulfill specific needs on the battlefield because using traditional finances from overseas would have taken days before they could be fully accessed and utilized.
Conclusion
Ukraine ranked third among the top 20 countries listed in the 2022 global crypto adoption index due to its war with Russia. Having received a donation worth $70 million in crypto, Ukraine has been able to stand up against the oppression of Russia in its year-long war.
