I love that there’s 8 Billion Tethers but USD/USDT volume on Kraken, one of only two places to trade Tethers for dollars, almost never cracks a Million.
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That’s because people convert to BTC and then sell that for USD. The fact that USD/USDT pairs have low volume means nothing
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So I agree there's very low USDT/USD exchange volume and lots of BTC/USDT + BTC/USD volume. But it's kinda weird! There's a ton of OTC USDT/USD volume. I'm surprised that e.g. ftx.com/trade/USDT/USD doesn't trade more.
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Like here's a weird fact: FTX has both OTC and spot markets for BTC/USD and USDT/USD. As it turns out most of the USDT/USD on FTX trades OTC, but a lot of the BTC/USD trades spot. Not sure why people choose one or the other.
thanks for the info mr *incentivized to perpetuate USDT fraud*
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Depends on the direction and size--but part of that is *because* we see a ton of demand OTC for it and not much on-market.
Right now e.g. I think you'd be better off selling USDT on the book and buying USDT OTC but it's just a few bps in either direction.
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This is my theory
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Replying to @CasPiancey
I think the main reason for this phenomenon is that transacting Omni USDT wasn’t super intuitive. So people learned to convert to BTC, send to fiat off ramp and dump it there. Now that USDT is mostly on Ethereum, I expect this trend to slowly fade away as it’s much easier
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That's reasonable--could also be that the people using USDT/USD were not really trading firms and so liked OTC > exchanges, but people trading BTC/USD[T] were traders and so liked exchange interfaces.
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A bit old , but might be relevant. Point being USDT is a gateway, might find some volume USDT USDC/TUSD Binance book is interesting bloomberg.com/news/articles/
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