Tether Volume Reaches All-Time High-How?

Tether volume reaches new all-time high one year after China banned all fiat on-ramps for crypto exchanges and the traders are still diving in the market with the dollar-pegged stablecoin Tether. This is one of the reasons how Tether reached a new all-time high in volume and we take a closer look in the altcoin news below.

The traders that generally work around such banking restrictions mainly use stablecoins. According to CoinMarketCap, the USDT activity reached an all-time high in August with a global market cap of $4 billion. Tether is reportedly used in about 40 to 80 percent of all transactions on the Huobi, Binance and other exchanges and the latter of which now offers loans based on the USDT collateral. Since this asset is a favorite among over-the-counter traders, the official exchange volumes show the complete picture. The blockchain data from CoinMetrics is showing a full year of transactions detected at an annual peak in activity on August 7^th with more than 78,000 active wallets for USDT and about 21,300 for the ethereum-based USDTe counterpart. Tether paid up to $261,000 in fees to the ethereum miners only to run the secondary version of the stablecoin.

If we take all things into consideration, the USDT brokers have carved out a very lucrative branch in 2019 and especially the brokers that provide fiat liquidity. One Chinese investor explained:

 “Tether has truly good liquidity in China. One of the primary use-cases is a fiat on- and off-ramp for crypto trading. I did also see some people using tether for legit business use-cases like cross-border trading.”

On the other hand, the two other Asian OTC traders who requested anonymity to protect their businesses explained that a huge portion of their traction comes from the Chinese clients that use USDT in order to move the assets far away from the country’s strict controls:

 “This has always been a significant part of OTC flows in crypto.’’

As we can see in the latest cryptocurrency news reports, the experts believe that this surge in the Tether volume could be driven because there is a huge enthusiasm for the potential bull market return. A US-based trader stated:

 “Tether is the easiest way to hold a relatively stable volume of value at an exchange that doesn’t accept dollars and much more about that [USDT] network effect than any technology, infrastructure or other advantages.”