By Hassan Mehmood (Saudi Arabia)
Crypto traders of East Asia region are more interested in altcoins than leading digital asset Bitcoin. The new report says that stablecoin Tether is also popular in East Asia as 33% out of all transacted volume done in USDT.
On-chain data analytics startup Chainalysis finds out that East Asia’s cryptocurrency markets are more inclined toward altcoins rather than Bitcoin and stablecoins. In countries like Korea, the young investors are doing trading of cryptocurrency as they could not find jobs for a better future.
Both Professional Retail Traders are involved
More than 16% of altcoins’ trading volume is from East Asia’s region, which is greater than any other region in the world. For example, Litecoin (LTC) and Bitcoin Cash (BCH) have 2.9x and 1.2x larger trading volumes in East Asia than other regions. Retail, as well as professional traders, from this region, are taking more interest in trading activity and the area is also taking higher risks than other regions. Chainalysis said:
“Cryptocurrency investors in the East Asian market appear to engage in more speculative trading of a wider variety of assets compared to similar regions like North America, where the pros tend to focus more on Bitcoin and hold for longer.”
It is found that in the last 12 months, addresses from the East Asia region count for more than 31% of all cryptocurrencies trading volume. Chainalysis’s report also says that East Asia received more than $107 billion in cryptocurrency in 2019 which was 77% more than Western Europe.
The managing director of blockchain company Quantstamp, Krishna Sriram, states that this region has more familiarity with electronic payments than others. He said:
“Services like AliPay in China and LINE in South Korea were already quite popular by the time cryptocurrency began to gain steam, so the idea of electronic money wasn’t as big of a leap.”
Reason behind Tether’s Popularity in China
Tether has become popular in China because it has taken the position of the US dollar. Founding partner at Primitive Ventures, Dovey Wan, said,” Tether has become a U.S. dollar replacement for many people in China. Lots of Chinese businesses and merchants, especially those working overseas, now accept Tether from customers.”
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