Tether (USDT) Gains Adoption Amid Falling Turkish Lira
Summary: Tether (USDT) has shown strong demand in Turkey since early May, despite a worldwide crackdown on crypto assets. The Turkish lira has dropped 80% in value since the previous election in 2018 and is down 20% against the dollar in 2023 alone.
Tether (USDT) has shown strong demand in Turkey since early May, despite a worldwide crackdown on crypto assets. In comparison to the major cryptocurrencies, the Turkish lira has done poorly, according to a recent analysis from Bloomberg.
Recep Tayyip Erdogan, Turkey’s president for more than a decade, was reelected. As the central bank pulled back from intervention, the national fiat currency plummeted 11% against the dollar in the preceding week. On Wednesday, the Turkish government stepped in to prop up the currency after its worst one-day decline in over a year.
Turks Flocking to Stablecoins
Since the lira has dropped 80% in value since the previous election in 2018 and is down 20% against the dollar in 2023 alone, Turks have been flocking to crypto assets, notably stablecoins like the U.S. dollar-pegged tether. According to Kaiko, lira transactions were 18% of total crypto trading volumes in May, but had dropped to 10% by early June.
Former banker and current university lecturer Ebru Güven said that stablecoins provide a way for customers to hedge against inflation. Güven said that the government has made it harder to get your hands on dollars and gold.
Trading Volume of USDT Surges
The report found that Tether’s market share on the leading cryptocurrency exchange in Turkey, Btcturk, had increased to 20%. This is a considerable step forward from Binance, the largest digital asset exchange by trading volume.
According to Dessislava Aubert, a Kaiko analyst, the Turkish market has shown continued interest in stablecoins despite exceptionally low volumes. Tether’s share of the local market’s trading volumes increased last month, she said, to its highest level since 2020.