Chinese users make up most of Tether trading volume

Exchanges Trading

The blockchain industry is still in its infancy and the cryptomarket is still very much affected by whales’ unexpected movements that determine the final prices.

When the whales enter the market and buy Bitcoin, the price goes up and everybody is happy. When the so-called whales decide to sell their coins, the cryptomarket collapses and traders are not happy anymore. But this is just a theory as correlations are difficult to make and the exact course of events are hard to reproduce.

However, for any trader that was in this business for more than a year, it is difficult not to notice or at least hear about the way Chinese investors use Tether as a ramp up method of entry into the market.

Now, with the latest Chainalysis report we don’t need to guess anymore as the analysis group noticed that when trading volume goes down Tether on-chain transfers tend to increase between exchanges and private wallets.

The same results showcase that Tether volumes hit new all-time-highs in 2019 and there is a strong connection with the Chinese exchanges accounting for more than 50% of the overall Bitcoin to Tether transactions.

If in the middle of the previous bear market of 2018 we had around 39% of on-chain transaction value for Tether alone, this year Chinese users make up around 60%. More than 30% of these transactions occur on Bitfinex and Binance, though the numbers decreased from the previous years.

The connection between Chinese investors using Tether to purchase Bitcoin and access the market is now already old story, but what it’s clear from this report is that users in China are mainly interested in trading in the cryptomarket looking for higher gains.

Or to say it differently, Chinese don’t seem so much interested in the holding aspect of the crypto-game and prefer to take risks for increased revenues.

Today, Tether is the most popular stablecoin in the market and every exchange offers multiple pairs of digital currencies with Tether to users who look to buy a coin or another.

As a sign of Tether’s importance, the last Bitfinex / Tether scandal seems to have already moved into old stories chapter of the cryptocurrency world.

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