The daily usage of Tether stablecoin USDT decreased at the Ethereum blockchain changed from Asian business hours to European and US market time later in the day, perhaps owing to China’s crisis on crypto-monetary trading and the movement of USDT users to other blockchains, according to a recent study.
Last year the majority of USDT activity on Ethereum was coordinated worldwide between 2 a.m. and 2 p.m. According to the Coin Metrics blockchain study company report, it was the busiest period between 6 a.m. and 8 a.m. UTC. However, this year’s use has been reduced between 2:00 and 6:00 UTC and increased between 15:00 and 20:00 UTC.
According to an analysis, the most USDT (-0.1%) activity happened between 2:00 and 14:00 UTC and 6:00 to 8:00 UTC last year. Usage between 2:00 and 6:00 UTC has decreased, whereas use between 15:00 and 20:00 UTC has risen.
The chart displays the use of USDT at Ethereum. More extensive trade operations imply darker colors. In 2021, the pattern of use changed somewhat later in the day.
Source: Data Pro for Coin Metrics Network
Investors may trade cryptocurrency 24 hours a day, seven days a week. Still, local stock market hours can be used as a proxy when traders are active in any given nation. This gives them an extra edge, and traders normally lookout for such high volumes.
A variety of factors may have contributed to the USDT’s daily usage pattern shifting to Ethereum. Some commercial activity has moved to blockchains with lower transaction fees, such as Tron and Solana.
China’s Crypto-Mining Ban
Additionally, with China’s reaffirmation of its crypto-mining prohibition and the start of a crackdown on crypto-mining in May, crypto-miners and investors may have migrated to Asia’s USDT operations. However, it is noted that this migration would not account for the swings until May. On Ethereum’s DeFi protocols, USDT may also be used as collateral.
In contrast, the dollar-linked competitor USDC stablecoin finds maximum use between 14:00 and 22:00 UTC according to American market hours. Bitcoin and ether are dispersed more evenly all day long.
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