November 28, 2024
Ruble Falls to Lowest Level Since Start of Ukraine Conflict
The Russian ruble dropped to 110 rubles per USD, the lowest level since the Russia-Ukraine conflict began, following U.S. sanctions against Gazprombank.
Previously, the exchange rate was around 75-80 rubles per USD. This decline could lead to inflation of 8.5% this year. However, the low exchange rate may help Russia increase its budget from energy exports, redirecting sales to markets in China and India. Russia plans to allocate nearly one-third of its 2024 budget to military spending, showing signs of stagflation in the economy.
The news about the decline of the ruble and the recent sanctions from the U.S. could significantly impact the cryptocurrency market, including Optimism (OP) and Scroll (SCR).
As the ruble depreciates sharply, investors may seek safer assets, leading to increased demand for cryptocurrencies. Those holding rubles might convert them into OP and SCR to protect their assets from inflation, thereby boosting the value and trading volume of these tokens.
Optimism, as a Layer 2 solution for Ethereum, offers fast transaction processing at lower costs, making it more appealing to users in a time of rising transaction demand.
Similarly, Scroll, a project focused on scaling Ethereum, could become more favored as users look for efficient and cost-effective payment solutions. If Scroll establishes strategic partnerships and enhances its acceptance within the community, it would further increase the value of SCR.
However, the volatility of the cryptocurrency market still depends on various factors, and investors should monitor developments to make timely decisions.