Cryptos Radiate Pain Following Ukranian Nuclear Power Plant Attack

Crypto markets tumbled alongside other financial markets after reports of intensified fighting in Ukraine and the Russian attack on a nuclear power plant in Ukraine emerged. Market capitalization of cryptocurrencies dropped more than 5 percent in the past 24 hours to $1.83 trillion. Major Asian stock markets closed in negative zone while European markets are also deep in the red, implying a weak and short-lived decoupling between stocks and cryptos.

The Dollar’s strength too impacted crypto market sentiment adversely. The Dollar Index which measures the Dollar’s strength against a basket of 6 currencies touched a 21-month high of 98.92.

The specter of commodity and oil inflation driving central banks to aggressive monetary policy is also quietly haunting crypto markets.

Sentiment in crypto market was also influenced over apprehensions that crypto volumes in Russia remained muted, quashing hopes that the sanctions evasion motive would hoist cryptos to an altogether higher orbit.

Bitcoin is trading at $41,294 after having touched a high of $44,009.46 and a low of $41,027.53 in the past 24 hours.

Ethereum has shed 7.2 percent in the past 24 hours and is currently trading close to $2720.

Market capitalization of 3rd ranked Tether (USDT), the largest stablecoin was at $80 billion. USDT volume in the past 24 hours was $64 billion.

Tether Operations Limited, the technology company supporting USDT on Thursday announced a collaboration with the Swiss city of Lugano, for the establishment of a center of excellence for blockchain adoption in Europe. The goal of this collaboration is to demonstrate real-world use of blockchain technologies by applying it practically to local communities in Lugano. In the near future, the city aims to scale its efforts to enable citizens and companies to fully pay their annual taxes and all goods and services in cryptocurrency.

4th ranked BNB(BNB) has gained 6 percent in the past week despite being down 4 percent on an overnight basis.

5th ranked USD Coin (USDC) also has seen market capitalization remain stable at $53 billion against a volume of $5 billion.

6th ranked XRP (XRP) has shed more than 4 percent overnight but is still 3 percent positive on a weekly basis.

7th ranked Terra (LUNA) has lost 4 percent overnight but is still sitting on a 36 percent weekly gain. Data from shows that Terra is the second most staked crypto coin, behind Solana (SOL) and ahead of Ethereum (ETH).

The war has awakened the crypto world to work towards the goal of scaling up blockchain capabilities and blockchain adoption to larger and meaningful levels. Without scale, cryptocurrencies cannot be a viable alternative in the larger world order.

The war is indeed crypto’s moment of reckoning. This is the time for digital assets to demonstrate store of value in a safe-haven context.

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