Bitcoin is not the biggest asset anymore

Bitcoin is not the biggest asset anymore 1024 500 Crypto Rand Group
Bitcoin is not the biggest asset anymore

If you think Bitcoin is the most traded asset, then you are wrong! Even if it is accounting for 70% of all crypto assets market value.

Bitcoin is not the biggest asset anymore, in trading volume.

While concrete figures on trading volumes are hard to come by in this often murky corner of finance, data from CoinMarketCap.com show that the token with the highest daily and monthly trading volume is Tether, whose market capitalization is more than 30 times smaller. Tether’s volume surpassed that of Bitcoin’s for the first time in April and has consistently exceeded it since early August at about $21 billion per day, the data provider says.

With Tether’s monthly trading volume about 18% higher than that of Bitcoin, it’s arguably the most important coin in the crypto ecosystem. Tether’s also one of the main reasons why regulators regard cryptocurrencies with a wary eye, and have put the breaks on crypto exchange-traded funds amid concern of market manipulation.

If there is no Tether, we lose a massive amount of daily volume — around $1 billion or more depending on the data source,” said Lex Sokolin, global financial technology co-head at ConsenSys, which offers blockchain technology. “Some of the concerning potential patters of trading in the market may start to fall away.

Coins With Biggest Daily Trading Volumes
In billions of U.S. dollars

Coins With Biggest Daily Trading Volumes
Source: CoinMarketCap.com
Values as of Sept. 27, 2019

Tether is the world’s most used stablecoin, a category of tokens that seek to avoid price fluctuations, often through pegs or reserves. It’s also a pathway for most of the world’s active traders into the crypto market. In countries like China, where crypto exchanges are banned, people can pay cash over the counter to get Tethers with few questions asked, according to Sokolin. From there, they can trade Tethers for Bitcoin and other cryptocurrencies, he said.

For many people in Asia, they like the idea that it’s this offshore, opaque thing out of reach of the U.S. government,

said Jeremy Allaire, chief executive officer of Circle, which supports a rival stablecoin called USD Coin.

It’s a feature, not a problem.

Read more on Bloomberg