The Role of Tether in Enhancing Binance’s Liquidity

02/17/2023 12:55 • AI & Tech Insights • 72 views

According to the news, Gabor Gurbacs, director of digital asset strategy of VanEck, an investment management company in New York, said on social media that some of the most liquid currency pairs (excluding Binance. US) on Binance were traded in the form of USDT. It is wise for CZ to support USDT. Compared with the stable currency issued by the United States, Tether’s attention to emerging markets may be considered less risky by global Binance users. A win-win situation for Binance users. The regulatory situation of cryptocurrency business in the United States is chaotic, unfriendly and unreliable. No wonder people, companies and exchanges will stay away from American products. Not long ago, owning/using American products was a pride, but today it is more like a responsibility.

VanEck Digital Asset Strategy Director: The regulatory situation of cryptocurrency in the United States is chaotic

Interpretation of the news:

The recent statement made by Gabor Gurbacs, director of digital asset strategy of VanEck, on social media raises interesting insights about Binance’s liquidity and its association with Tether. According to Gurbacs, some of the most liquid currency pairs traded on Binance, excluding Binance. US, were in the form of USDT. The growing use of Tether can be seen as a wise move by CZ, the CEO of Binance, to support its liquidity.

Comparatively, Tether’s attention to emerging markets is viewed as less risky than the stable currency issued by the United States. This emphasis on the emerging markets may have appealed to global Binance users, resulting in a win-win situation for them. However, the regulatory landscape of the cryptocurrency industry in the United States remains chaotic and unreliable, which discourages people, companies and exchanges from embracing American products, including stable currencies.

The use of USDT, a stablecoin which is pegged to the US dollar, enables users to trade in a stable currency, without the traditional service fees associated with transacting in fiat. Moreover, Tether’s market capitalization has increased from $4 billion in April 2020 to $60 billion in May 2021, highlighting its growing significance in the cryptocurrency market.

As the world’s leading cryptocurrency exchange by volume, Binance has gained a reputation for offering a diverse range of trading pairs, including altcoins that are not available on other exchanges. Tether’s compatibility with Binance has enabled it to provide a reliable, robust, and widely accepted means of facilitating digital asset trading. Given the growing demand for crypto-to-crypto transactions, Tether can play a critical role in enhancing Binance’s liquidity.

In conclusion, Tether has emerged as an important tool for facilitating liquidity on Binance, a leader in digital asset trading. Its compatibility with Binance, coupled with its attention to emerging markets, has been viewed as a wise move by CZ. The use of Tether not only enables users to trade in a stable currency but also incentivizes them to embrace a growing trend of cryptocurrency-to-cryptocurrency transactions. Binance’s support for Tether and its robust digital asset trading infrastructure signifies the importance of stablecoins in the growing cryptocurrency industry.

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