Diar: Tether’s demand rises in China, exceeds $10 Billion in 2019

The demand for stablecoin is increasing in the Asian markets, especially in China, in spite of the controversies with Bitfinex and Tether. Diar, a blockchain research company, reported that the demand for Tether in China surpassed $10 billion this year while it was approximately $16 million last year. The company said: 

“2019 to date flows into exchanges catering primarily for Chinese traders beat the $7Bn of all the transactional value for 2017.”

All crypto exchanges were banned by the Chinese government in September 2017 when it was the largest crypto trading market in the world. The traders were allowed to trade on over-the-counter (OTC) desks. This enables professional traders to access the stablecoins and move them to overseas exchanges to trade crypto.

“Tether on-chain movements stateside account for a tiny 3 percent of known volumes at $450Mn, more than $10Bn less than flows sent and received by Chinese exchanges,” the report added.

The recent bull run escalated the Chinese demand for stablecoins. The data was extracted from the on-chain movement of the stablecoin.

“In the 2018 bear market, Chinese exchanges accounted for 39 percent of all known on-chain transaction value for Tether. This year to date, the red dragon is responsible for a whopping 60 percent. Global exchanges like Binance and Bitfinex have a share equivalent to half that at 31 percent, dropping from the 47 percent share seen for both 2017 and 2018,” Diar stated.

On the other hand, the trend was the opposite in the United States. The company said:

“US-based exchanges saw their share of the stablecoin demand/trading drop from 44 percent in 2017 to less than 10 percent in 2018.”

However, Bitwise reported that 95 percent of the crypto trading volumes are fake. Diar noted:

“Bitwise, which looked into 83 exchanges, found a mere 10 to be compliant across its own tests. And there are clear examples of dubious trading volumes that resemble simple algorithms filling up order books that fall far from reputable exchange trading trends.” 

Diar recently revealed that the large-scale crypto holders are hoarding Bitcoins as $36 billion worth the digital assets are stored in wallets with 1,000-10,000 BTC. Read more about it here.