Why are cryptocurrencies making noise in the midst of a war? The remarkable improvement shown by crypto assets lately aside, there are at least two reasons why cryptos are in the limelight yet again.
First, the embattled country, Ukraine, which is thwarting the Russian invasion bid, called for donations, even if it meant in cryptocurrencies. The official handle of the country gave wallet addresses that could accept cryptos.
Reports say Ukraine has raised tens of millions of dollars so far in crypto asset donations. Second, some experts say that Russian businesses and individuals could be able to evade sanctions that are being imposed by the West by using cryptos.
The concern has led to Jerome Powell, the Federal Reserve Chair, seeking the regulation of cryptos. That aside, let’s know which are the three cryptos that deserve attention during the ongoing war.
1. Bitcoin (BTC)
What makes Bitcoin the top contender here is not one but a slew of factors. First, it is one of the cryptos that was sought as donations by Ukraine. Second, the over 40 per cent share of Bitcoin in the total market cap of all cryptos means it remains, by far, the most recognizable blockchain-based digital currency.
Since Bitcoin is so popular and is legal tender at least in one country, it could make a use case in Russia in the face of wide-ranging sanctions and the decline in the ruble, Russia’s official currency. According to reports, Bitcoin trading activity has surged in Russia, which may be one reason why BTC’s price is rising of late. Besides, Bitcoin ATMs exist globally, where both sale and purchase of BTC can be done using fiat currency.
Bitcoin is the most mainstreamed cryptocurrency, and it has S&P Dow Jones indices tracking its price. If Bitcoin finds an opportunity in the crisis, the war may become a major turning point. Bitcoin was always pitted against fiat currencies, and if these fiat currencies like the ruble continue to lose value, Bitcoin may find its silver lining.
Also read: What is Amazon Prime Gaming’s new addition Crypto Against All Odds?
2. Dogecoin (DOGE)
It is quite comprehensible that a large-scale conflict, especially when it is underway in Europe, can be detrimental to the global payments system. Here, it is notable that Russia has been ousted from the SWIFT payments system, which could deal a big blow to Russia as well as its trade partners.
Maybe, though this seems a speculation right now, tokens may become a medium of exchange. As far as tokens are concerned, Dogecoin is one of the most popular ones, and Elon Musk’s support to the Dogecoin project undeniably adds to the DOGE crypto’s appeal.
DOGE may have started its journey as a meme token, but it makes a top cryptocurrency by market cap. Dogecoin is also very identifiable globally, and according to reports, the DOGE token finds use in tipping, and its backers say it was always envisioned as a tipping token to be used on platforms like Twitter and Reddit.
Also read: What is Rarible crypto & RARI token’s price prediction?
It might be possible that users sharing quality and informative content on social media may now see their content getting rewarded, and DOGE makes a use case in such a scenario. Besides, the world’s richest person, Elon Musk, has always been quite supportive of the Dogecoin project.
Data provided by CoinMarketCap.com
Also read: BTC, ETH, SHIB, MANA & UNI: Top 5 cryptos with best use cases
3. Decentraland (MANA)
Decentraland is not a yet-another cryptocurrency project. It is a metaverse crypto, in fact, the one with the highest market cap in this category as of writing. Lately, Microsoft’s acquisition of a listed gaming company was viewed by some as the tech giant’s possible dip into metaverses.
Previously, Mark Zuckerberg made public his intent to harness the potential of virtual worlds where users can do things they may not be able to in the real world. Decentraland’s metaverse may be that world which already poses competition to tech giants in the metaverse space.
Further, the ongoing conflict may leave people across the world with unwanted baggage. War brings it own costs, social and economic.
People may find comfort in the fictional world where they could be the masters, and where things are run more according to the wishes of the user, not any centralized authority. Decentraland has parcels of land in its virtual setting, where users can build their own world.
What adds more sheen to Decentraland is NFT underpinnings, which enables digital asset owners to monetize their holdings. Decentraland may be facing competition from other blockchain metaverse projects like The Sandbox, and Axie Infinity, but so far, Decentraland has maintained its lead, thanks to brands like Samsung using its metaverse.
Also read: Top 3 cryptos under $0.0001 to watch in the near term
Bottom line
Cryptocurrencies, led by Bitcoin, have gained lately, shrugging off the negative sentiments that gripped the sector when the war struck. A few cryptos may be able to emerge as a major force during and after the war.
Bitcoin has seemingly established its use case by helping Ukraine raise funds. DOGE may go on to become a medium of exchange in a distressed global financial landscape. Lastly, Decentraland’s fictional world may provide people some refuge from tensions that have gripped the real world.
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