The Turkish Lira’s depreciation has contributed to an increase in daily crypto trades in Turkey to over one million.
Posted by : Crypstarter Team
Category : Blog, news
According to a report, the number of daily trades in economically troubled Turkey has surpassed one million. This increase in trades has been attributed to the Turkish lira’s depreciation, which hit a new low against the US dollar on December 20.
Cryptocurrency trades in Turkey’s inflation-stricken Lira have risen to more than one million per day for the first time since March, according to a Reuters report citing Chainalysis and Kaiko data.
The return to over a million trades per day has occurred at a time when Turkey’s fiat currency, the lira, has depreciated by nearly 40% since September, according to the report. Prior to the recent surge, cryptocurrency trades in Turkey had previously exceeded one million per day following President Recep Tayyip Erdogan’s unexpected dismissal of the central bank governor on March 22.
The dismissal of then-governor Naci Agbal sparked inflation fears among Turks, causing the lira to fall by more than 10%. However, after a period of relative stability — which resulted in fewer cryptocurrency transactions — trades per day surpassed one million once more following the lira’s latest drop.
According to recent data, the lira briefly fell to a new low of 18.10 per dollar on December 20, 2021. However, following the announcement of a rescue plan by the government, the lira has recovered to 12.50 at the time of writing.
Gold Restrictions are a boon for cryptocurrency.
According to the Reuters report, the recent increase in cryptocurrency trades may be related to restrictions imposed earlier this year that made it difficult for Turks to convert the lira to gold. The race of Bitcoin to a new all-time high of more than $69K in November is also said to have contributed to the increase in trades.
According to the report, the most popular cryptocurrencies among Turks are bitcoin and the stablecoin USDT. Data show that the TRY/USDT pair is one of the most traded, while the fiat currency’s pair with BTC is the 12th most traded.
Reports that Turks are increasingly adopting cryptocurrencies come just a few months after the central bank prohibited the use of crypto assets to pay for goods and services. Furthermore, President Erdogan has stated that the country is at war with cryptocurrencies.