The ban on mining and the blocking of crypto-platform operations by banks in China led to a reduction in the share of local bitcoin exchanges in favor of US-based competitors. Analysts at Coin Metrics came to these conclusions.
What can we learn about crypto activity around the world from looking at trading data?
Let’s look at two recent trends:
🔹Decreasing activity on China-focused exchanges
🔹 Increasing volume in Turkish lira-quoted Markets
— CoinMetrics.io (we’re hiring!) (@coinmetrics) January 19, 2022
Huobi, the largest in the region, accounted for 15% of trading volume on the Bitcoin spot market at the beginning of the year. By the end of the year, the figure had halved. The weakening of positions allowed FTX to increase its market share from 1% to 10%, Coinbase – from 9% to 14%.
A similar situation has developed in the spot trading of Ethereum. To a lesser extent, this affected the OKX exchange (formerly OKEx).
The decline in the performance of Chinese exchanges is also confirmed by the analysis of the relative share of BTC and ETH balances on Huobi.
The shift in activity to the North American region is reflected in increased trading volume during US market hours (9:30 am to 4:00 pm ET).
In the context of pairs of digital currencies against fiat, Coin Metrics found a surge of interest from crypto investors from Turkey. Analysts attributed this to a jump in inflation in the country. In December, in annual terms, it reached 36%.
Against the background of the devaluation of the Turkish lira, the volume of trading in crypto assets denominated in it on Binance in 2021 reached $160 billion. Turkish citizens showed the greatest demand for stablecoins BUSD ($7 billion) and USDT ($36 billion).
The share of the local currency in Tether’s trading turnover exceeded that of the euro and the British pound.
Recall that in January, Cryplogger reported that in the fourth quarter of 2021, against the backdrop of a weakening lira, the volume of daily trading of digital assets in fiat on Turkey’s three main exchanges jumped to an average of $1.8 billion per day.
In September, President Recep Tayyip Erdogan said that the Turkish authorities and the central bank were “waging war and fighting” against cryptocurrencies.