The dominance of the Turkish Lira (TRY) in Binance, the largest cryptocurrency exchange in terms of client count, is an intriguing development in the crypto world. According to Kaiko, a blockchain analytics firm, 75% of all fiat volume in Binance is dominated by the Turkish Lira. This statistic suggests a significant shift in global dynamics, particularly in terms of crypto adoption.
In the past three years, an unidentified cryptocurrency has emerged to gain popularity over traditional fiat currencies. However, when examining the use of TRY in 2021, it was apparent that its adoption was relatively low compared to other currencies such as the Euro and the Brazilian Real (BRL). This trend, however, changed dramatically in 2022 and continued to soar in 2023, pushing the Turkish Lira to the top.
As of September 14, Binance remains the most popular cryptocurrency exchange, supporting a wide variety of coins, totaling over 380. Not only does Binance support a multitude of cryptocurrencies, but it also accepts over ten different fiat currencies, including the Turkish Lira, Euro, Brazilian Real, Nigerian Naira, GBP, and the Australian Dollar.
Looking at the statistics, it is evident that the USDT, TUSD, and FUSD pairs are among the most liquid on Binance. This observation is confirmed by data from Kaiko, which shows that fiat trading on Binance has experienced a significant contraction of over 95% since 2021 when the prices of top crypto assets reached their peak. The surge in Bitcoin prices back in November 2021, with prices soaring to nearly $70,000, resulted in increased trading volumes in fiat and stablecoin pairs.
CoinMarketCap data reveals that the BTC/USDT pair is currently the most liquid, with an average daily trading volume surpassing $986 million. Additionally, the BTC/TUSD pair attracts over $486 million in trading volume. This trend highlights the level of liquidity that stablecoins possess and the influence they have in crypto trading.
Stablecoins, unlike traditional fiat currencies, offer seamless and almost instantaneous transfers. For instance, USDT, the world’s largest stablecoin by market cap, is available on various blockchains, with Ethereum and Tron being the most popular minting platforms.
Delisting and Shifting Dynamics
The delisting of USDC resulted in a surge in BUSD volumes on Binance. However, the New York Department of Financial Services (NYDFS) issued a directive that prevented Paxos, the then issuer, from minting new tokens. This directive caused a decline in BUSD activity, while USDT solidified its position as the dominant stablecoin on the platform. TUSD and FUSD activity on Binance, however, remained high.
A recent survey conducted by KuCoin, a well-known crypto exchange, revealed that more than 50% of people in Turkey own and use cryptocurrency. This data implies a remarkable level of crypto adoption within the Turkish population, highlighting the country’s growing interest in the digital asset space. Additionally, the Turkish government has been experimenting with a central bank digital currency (CBDC) known as the Digital Lira.
The dominance of the Turkish Lira in Binance signifies a notable shift in the global dynamics of cryptocurrency adoption. With the Turkish Lira surpassing the Euro and the Brazilian Real as the preferred currency on the platform, it is evident that Turkey is rapidly embracing cryptocurrencies. Moreover, the liquidity and convenience offered by stablecoins have further propelled their use in crypto trading. As the crypto landscape continues to evolve, it will be interesting to see how this trend progresses and how other countries respond to the growing popularity of digital assets.