Why Tether Volume Is At All-Time Highs

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A year after China banned local fiat on-ramps for crypto exchanges, Chinese traders continue to drive the market forward by using the dollar-pegged stablecoin tether (USDT).“Crypto trading businesses are restricted from accessing banking services in China, but they are thriving nonetheless,” Dragonfly Capital Partners co-founder Alexander Pack told CoinDesk.Traders generally work around such banking restrictions by using stablecoins. According to CoinMarketCap, USDT activity reached an all-time high this month with a global market cap exceeding $4 billion. Tether is reportedly used in between 40-80 percent of all transactions on the exchanges Huobi and Binance, the latter of which now offers loans based on USDT collateral.But since this asset is favored among over-the-counter (OTC) traders, official exchange volumes hardly paint a complete picture.Blockchain data from CoinMetrics tallying a full year of transactions detected an annual peak in activity on Aug. 7, with 78,100 active wallets for USDT and nearly 21,300 for…

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