On the heels of Ukraine’s economic troubles, Bitcoin and Ethereum have taken a pounding in the crypto market.
Numerous news reports claim that about two dozen Russian cruise missiles struck targets in Ukraine. This includes Kyiv, the capital.
Russia’s attack undoubtedly is the cause of the current tremor shaking the world’s crypto and stock markets.
The crypto market’s value was $1.66 trillion in the last 24 hours. This is $1.4 trillion less than the $3.01 trillion that it recorded in November, when transaction volumes dropped.
Stablecoins had $72.07 billion of total volume in the last 24 hours. DeFi’s total volume was $12.87 trillion.
Ukraine Is Better ‘Armed’ Than Russia In Crypto Adoption As War Breaks Out| Ukraine Is Better ‘Armed’ Than Russia In Crypto Adoption As War Breaks Out
Crypto Market Hemorrhages
As of writing, Bitcoin’s price has fallen to $34,852.90. This is a drop of 6.48%. Ethereum, however, stands at $2,343.16, a decrease of 12.02%.
Cardano coins lost 10.88% and Avalanche was down 12.27%.
Yesterday’s Polkadot price fell by 7.26%. Litecoin lost 7.98%. Memecoin Shiba Inu(SHIB), dropped 7.28%. Dogecoin, however, decreased by 9.88%.
Daily Chart Source: TradingView.com| Source: TradingView.com
Stagnant Wrapped Bitcoin Supply
According to research from cryptocurrency financial intelligence service CoinMetrics this week, Wrapped Bitcoin’s supply increase has stalled since December of last year.
Ethereum tokens backed by Bitcoin are known as “wrapped bitcoins.” BitGo’s multi-signature wallet holds all BTC.
Around 1.4% of all Bitcoin supplies exceed 19,000,000 units are wrapped Bitcoin.
66% are employed by lending protocols and decentralized exchanges, out of more than 263,000 tokens that have been locked up in smart contract smart contracts.
The number of WBTC currently in circulation increased more than fourfold between January and December 2021. However, it has remained steady at around 260,000 units since then.
Bitcoin Price Nosedives As Russian Missiles Strike Ukraine’s Cities| Bitcoin Price Nosedives As Russian Missiles Strike Ukraine’s Cities
Crypto Market Attack Does Not Displace DeFi Industry
Similar trends are being observed in the DeFi sector. According to December 27th 2021, the total wealth in decentralized finance protocols was below $200 Billion. It had been around $251 Billion as of December 27, 2021.
The Russian Invasion of Ukraine Worges Crypto Crisis
Russian President Vladimir Putin said the operation is in reaction to Ukraine’s alleged threats in a live television speech.
Putin claimed that Russia doesn’t intend to attack Ukraine. However, he was wrong.
The World reacts with anger
An assault on Ukrainian cities that U.S. President Joe Biden characterized as “unprovoked and unwarranted” elicited condemnations around the world.
Russia’s invasion on Ukraine has not only jolted the broader crypto market, but the global financial markets as well.
Analysts said that while cryptocurrency was not an investment choice to replace gold due to the current Ukrainian crisis, it has been unable or unwillingly used as such.
Since July 2020, gold has traded at some of its best levels since Russia’s attack on Ukraine.
Blockworks featured image, Chart form TradingView.com