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Tether [USDT] records higher on-chain trading volume in China over its U.S counterparts

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Tether's on-chain trading volume skyrockets in Chinese counterparts as compared to the U.S.
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Tether reached a new all-time high in terms of its market cap recently, which incidentally was also briefly equivalent to the number of USDTs in circulation. Further, Tether’s 24-hour trading volume also overthrew that of Bitcoin’s.

Bitcoin has long been the poster child of the cryptocurrency space. However, Tether easily surpassed its trading volume after Tether printed more than a billion USDT in over a month. A recent Diar report looked at the source of Tether’s spontaneously increasing trading volume.

According to the report, on-chain movements for Tether have hit a new all-time high for the second quarter of 2019, with most of the volume seen coming from the Chinese market.

The report stated,

“The volume coming in and out of Chinese exchanges dwarfs western and global trading venues and accounts for more than half of the total transaction value of known parties.”

In 2018, Tether’s demand in China hit a height of $16 billion. However, the demand has surpassed a total of $10 billion in 2019 so far. Further, the transactional value arising out of China for 2019 has already exceeded “$7Bn of all the transactional value for 2017.”

The report further added,

“Tether on-chain movements stateside account for a tiny 3% of known volumes at $450Mn, more than $10Bn less than flows sent and received by Chinese exchanges.And the demand is on the rise. In the 2018 bear market, Chinese exchanges accounted for 39% of all known on-chain transaction value for Tether. This year to date, the red dragon is responsible for a whopping 60%.”

Additionally, popular exchanges like Binance, Coinbase, and Bitfinex share only half of the above-mentioned value, i.e., 31% of the on-chain transaction value for Tether as of 2019. This value has fallen from 47%, as recorded in 2017. The US-based exchanges saw their share of stablecoin demand drop to less than 10% in 2018, when compared to 2017.





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Ampleforth could help create next-gen synthetic commodities for portfolio diversification, claims Blockfyre report

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Ampleforth could help create next gen synthetic commodities for diversification of portfolios claims new Blockfyre report
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Ampleforth was the first token to successfully complete an IEO on Bitfinex. This IEO caught the attention of a lot of users in the cryptospace, as the $5 million hard cap was sold out within the first 11 seconds. A new report by Blockfyre details how Ampleforth could pave the way for a new asset class for portfolio diversification in the future.

The report also highlighted a feature of Ampleforth that allows a flexible supply that adjusts to the market demand, while price simultaneously finds equilibrium. The token also aims to tackle the strong correlation that most cryptocurrencies share with Bitcoin.

Synthetic Commodity

Ampleforth project has the ability to create synthetic commodities that are disconnected when it comes to price fluctuations due to correlations, which is a common problem faced by both cryptocurrencies and traditional asset classes. Although Bitcoin was created to tackle problems that fiat currency inherently has, it still has some correlation issues.

In a world where traditional assets are widely affected by macroeconomic and global political scenarios, Ampleforth aims to create a new asset class, Synthetic Commodity, to tackle this problem.

The report stated,

“BTC as a synthetic commodity doesn’t show correlation to traditional markets such as stock stocks and bonds. Thus it reflects a potential good investment for portfolio diversification, in order to tackle macro-economic recession”

Although BTC is an uncorrelated asset, other cryptocurrencies are widely correlated to it. Ampleforth’s protocol introduces synthetic assets that “will always find a price-supply equilibrium by adjusting the price due to demand.” The report added,

“It needs to be emphasized, that these price-supply information will always be distributed amongst all token holders, so the supply of all token holders will decrease / increase. As a result, the overall cut of the total supply for each person will always remains the same.”

The report further said that if successful, Ampleforth will directly compete with Bitcoin’s $145 billion market cap and also against traditional asset market-based in fiat.





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