China has been one of the biggest cryptocurrency market in Asia. It had already been dominating as far as mining industry is concerned. But it has been reported that Bitcoin is not the only force behind the growth of cryptocurrency market in China.
Tether has been the major reason behind a large part of its growth as it is one of the most loved cryptocurrencies in China. According to a report named: East Asia: Pro Traders and Stablecoins Drive World’s Biggest Cryptocurrency Market, 33% of all value transacted on-chain comes from stablecoins.
In June, Tether beat Bitcoin to become the greatest player in the Chinese market. It was the the most-received cryptocurrency by East Asia-based addresses.
Tether has a popularity of 93% in East Asia. It is also a result of the Chinese government going hard on the king crypto.
Tether has become the “de facto fiat stand-in for Chinese cryptocurrency users,” Chainalysis said.
The East Asia cryptocurrency market is dominated by professional traders, with roughly 90% of all volume transferred by East Asia in any given month attributed to professional-sized (above $10,000 USD worth of cryptocurrency) transfers, a chainanalysis blog wrote.
Only North America and Western Europe have matched or exceeded that share of market going to professional traders in the last 12 months.
Interestingly, professional 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 added.