Softer Lira Led Turkish Investors To Stablecoins
The Turkish lira’s ongoing decline against the U.S. dollar has prompted a surge in local demand for stablecoins, particularly Tether (USDT), as investors seek refuge from the country’s economic uncertainties. Despite the global crackdown on cryptocurrencies and falling prices for major tokens, stablecoins have become an attractive option in Turkey, where the lira has suffered significant losses.
According to data from Kaiko, lira transactions accounted for 10% of total cryptocurrency trading volumes in early June, peaking at 18% in May. This represents a notable increase from the 4% recorded at the beginning of 2023. Stablecoins, designed to maintain a consistent peg with the U.S. dollar, have gained popularity as they offer a potential safeguard against the lira’s depreciation.
The steady demand on Turkish markets underscores the allure of stablecoins. Data from CoinMarketCap indicates that Tether’s share of trading volumes on BTCTurk, one of the largest Turkish crypto exchanges, stands at 20%, while it is merely 1% on Binance, the world’s leading digital asset exchange. This stark contrast reveals the strong demand for stablecoins among Turkish investors.
(With inputs from Shikha Singh)
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