Turkish investors buying Tether. Stablecoin Tether trading volume in Turkey in the past week was reported to have jumped by 20 percent, the highest since May 2020.
This number shot up sharply when compared to Tether’s trading volume before Tayyip Erdogan was re-elected as president of Turkey for three terms at which time Tether’s trading volume only recorded a 4 percent increase.
This surge occurred right after the lira currency was hit by a massive devaluation. During the Turkish presidential election, the lira currency has fallen by more than 80 percent.
This negative response occurred because investors began to be overshadowed by concerns over the easing of interest rates which Erdogan called for again after being elected President. This pressure made the value of the lira continue to record a sharp decline.
Worried that the decline in the lira would further fuel the swelling of losses, investors have finally started to shift their investment assets into Stablecoin Tether.
They believe that Tether can protect its users from the high volatility of cryptocurrencies considering that Tether is a stablecoin whose value is pegged to the US dollar. In addition to the above reasons, a university lecturer in Istanbul, Ebru Güven said that regulations have made it difficult for investors to buy dollars or gold.
This reason then prompted people in Turkey to buy digital assets such as stablecoins amid the collapse of the Lira currency. Before Tether’s popularity soared, since 2019 this stablecoin was considered a hedging asset for market participants in Turkey.
Even though Turkey’s central bank strictly prohibits the circulation of cryptocurrencies in their country, this does not necessarily dampen people’s interest in collecting Theater crypto currency.
Turkish investors buying Tether. Turkey became the second country in the world that has the highest level of ownership of crypto assets with a total of 27.1 percent, according to research firm GWI.