It has been more than a year since China banned the exchange of local fiat currency and cryptocurrencies. Despite the ban, Chinese traders continue to trade in the crypto market using the stable coin tether (UDT) which is pegged to the US Dollar.

Companies have been able to overcome these banking constraints <a href="https://www.cryptoknowmics.com/crypto/stablecoin-rewards-launched-by-social-networks-of-taringa/">using stablecoins</a>. According to Coinmarketcap, Tether activity reached its highest trading volume in August with a global market value of over $4.2 billion.

USDT is used in between 40% to 80% of all transactions on popular exchanges Huobi and Binance, which currently offer USDT collateral loans.

Since tether is mainly used for over-the-counter trading, the official exchange volume does not give a clear picture.

<a href="https://www.dragonflycapitalpartners.com/">Dragonfly Capitals</a> partner co-founder Alexander Pack revealed in an interview that "Cryptocurrency companies don't have access to banking in China, but they are thriving, and Tether has really good liquidity in China.

<strong>Tether Experienced a Spike In Transaction Volume In the Past One Month</strong>

According to data from CoinMetics, which took into account the yearly volume of transactions. There was an annual spike on August 7, with 78,100 active USDT portfolios and more than 21,000 for Ethereum USDT counterpart.

According to ETHGasStation,  Tether paid nearly $261,000 in fees to Ethereum miners just to run the ETH version of the stable coin. The company has also confirmed that a stable coin which will be tied to the Chinese Yuan is under development.

Considering the amount quoted as transaction fees, USDT brokers enjoyed a lucrative 2019 especially firms that provide fiduciary liquidity. With the growing adoption of Bitcoin and interest by investors, it is no surprise that coin is popular in China.

Tether’s application continues to grow as it is mainly used in cryptocurrency negotiation and for cross border transactions. It remains to be seen whether this vertical slope will continue in the coming months as the crypto market rebounds.

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Tether (USDT) Adoption Continues To Grow In China

I am olowoporoku adeniyi, writer, editor and crypto evangelist, with five years experience in the Blockchain industry.

Tether (USDT) Adoption Continues To Grow In China

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