- Diar shows Chinese investors are demanding and trading with Tether
- Bitwise data about exchanges could be far from the real numbers
In a recent report released by Diar, the company explains that on-chain data shows that Tether (USDT) volumes are reaching a new all-time high for the second quarter of this year. One of the most shocking things is the fact that trading volumes in China are much larger than trading volumes in Western countries.
Tether Volume Grows In China
Several cryptocurrency exchanges have been accused of having large amounts of the fake trading volume. This is something that is harming the crypto community and market as well. For example, the U.S. Securities and Exchange Commission (SEC) decided not to approve a Bitcoin exchange-traded fund (ETF) because it believes that the market is currently being manipulated by larger investors.
According to data released by Chainalysis, the demand for Tether in China reached $16 billion in 2018. However, this year seems to be even better than the last one. Since January 2019, the number of USDT received by Chinese exchanges surpassed $10 billion. That means that we could be heading towards the best year ever.
Diar shows that Chinese exchanges accounted for 39% of all on-chain transactions value for Tether. This year, things are getting even more interesting. The country is currently responsible for 60% of all on-chain transactions. Moreover, there are other exchanges such as Binance and Bitfinex that currently have 31% of the total Tether volume compared to the 47% share they had last year.
Meanwhile, in the United States, things are getting worse. The demand for stablecoin dropped from 44% in 2017 to less than 10% in 2018.
Diar explains that on-chain transactional volume in 2019 has gone up with the reported trading volumes in the market. The increased demand for Tether in China is related to the fact that there are investors that want to trade with these funds.
“Even a single rade of Tethers moved onto Chinese exchanges would equal daily volumes equivalent to $215 million for the month of April, which is three times as much as Coinbase and on par with Binance,” Diar wrote.
The report concludes that the report released by Bitwise, an asset management company that informed that 95% of crypto trading volume is fake, is likely to be far off the mark.