Tether drives China’s massive crypto market as the stabelcoin is huge in East Asia making Bitcoin not doing all the hard work as the new reports show in our Tether coin news.
The stablecoin usage is “off the charts” in East Asia which is the world’s biggest crypto market according to Chainalysis. More than $50 billion in crypto moved from East Asia addresses to addresses in other regions of the world in the past year. this could be because people are using currencies such as Tether for capital flight. East Asia is still the biggest crypto market but it seems that Tether drives the huge market there and not Bitcoin.
Another preview of our Geography of Cryptocurrency Report is here! This week, we cover East Asia, the world's biggest crypto market by transaction volume. Read to learn about professional trading strategy in the region, the role of stablecoins, and more! https://t.co/wG9lmVfSfj
— Chainalysis (@chainalysis) August 20, 2020
Stablecoin usage in the region is actually off the charts according to a report published by Chainalysis. The report dubbed “East Asia: Pro Traders and Stablecoins Drive World’s Biggest Cryptocurrency Market” claimed that about 33% of the value transacted on-chain comes from stablecoins. Tether is the biggest player here, beating Bitcoin to be the most-received cryptocurrency in East Asia.
Out of all the stablecoins, Tether is by far the most popular in East Asia accounting for 93% of all stablecoin value transferred by the addresses in the region as the report said. This is because the Chinese government that was quite hard on Bitcoin for a long time, banned direct trading of yuan for crypto. Buying Tether with Yuan was also banned but East Asian users got their hands on the currency via other means such as bank accounts from out the country.
The analysis firm found that over-the-country trading activity in China is what boosts the Tether $5 billion surges in demand earlier this year. Despite the strict rules in countries such as China, the market is still huge and the traders are avoiding the rules as more than $50 billion moved from East Asia addresses to other regions in the world. In Western Europe, the figure was little over $38 billion.
China is usually strict on capital flight as citizens are able to move about $50,000 or less out of the country. As the government cracks down on people that avoid the rules, it could be Tether that will come to the rescue as Chainalysis reported:
“Stablecoins are particularly useful for capital flight, as their fiat currency-pegged value means users selling off large amounts in exchange for their fiat currency of choice can rest assured that it’s unlikely to lose its value as they seek a buyer.”
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]