After Ethereum’s rising fees due to DeFi boom, now Tether surpasses the 7-day average adjusted transfer value on Bitcoin. Another report by Chainalysis on the east Asian markets shows considerable institutional interest in cryptocurrencies.
As reported earlier on CoinGape, stablecoins and Ethereum have come at par with (even surpassed) Bitcoin [BTC] in terms of volume of daily transfers and fees. Now, Tether alone surpasses Bitcoin, with USDC and DAI increasingly gaining momentum from the DeFi boom.
USDC supply has increased 31% since the beginning of May; it is currently 940 million (only 60mln short of a billion.) It will be the second stablecoin with a supply of more than a billion. The rise in the supply of USDC can be attributed to the DeFi boom with high USDC return on platforms like Compound.
Capital Flight to Stabecoins
According to a separate report by Chainalysis, roughly 90% of all volume transferred by East Asia in any given month attributed to professional-sized (above $10,000 USD worth of cryptocurrency) transfers. Moreover, the traders there are more focused on altcoins and stablecoins than the rest of the world. East Asia has the lowest share of the on-chain volume devoted to Bitcoin at 51% of transfers by volume, followed by Europe and North America.
Moreover, the report shows institutional traders in eastern Asia are the primary operators in the region. There as well Tether is leading the transfer of value. John Paul Koning, an expert on monetary economics tweeted,
Tether just beat Bitcoin to be the most-received cryptocurrency by East Asian addresses. -Around $50 million Tethers leave East Asia each day. Chinese capital flight?
While the narration of the Chinese capital flight could be true, the US economy might not be the ideal choice of investment as well. The Federal Reserve debt has risen astronomically with large-scale money printing in the last few months. According to financial analyst and founder of Quantum Economics, Mati Greenspan the US Bond Market could soon ‘implode.’ The rising American debt will act as the catalyst for the biggest capital flight in history.
USDT is a cryptocurrency is providing an escape from the banking system and capital flight for Asian countries. This in the future can act as a medium for investment in Bitcoin and other cryptocurrencies.
Do you think competition with Tether positive for the crypto industry or not? Please share your views with us.