The Turkish Lira (TRY) has emerged as the leading fiat currency traded on Binance, the world’s largest exchange by volume, according to recent research. The surge in the number of investors has contributed to this significant development, with the Lira accounting for 75% of all fiat volumes on the exchange in September.
The Growing Interest in the Turkish Market
Binance’s market research has highlighted the increasing trading volume around the Lira, indicating a growing adoption appetite among both new and experienced users. The exchange specifically examined the Turkish market to gauge investor sentiment, preferences, and levels of experience.
Over the past three years, Turkey has experienced a remarkable rise in crypto adoption. The country’s adoption rate has soared from 16% to 40% and currently ranks 12th on the Chainalysis Global Crypto Adoption Index 2023. This impressive growth reflects the changing landscape of the Turkish market.
- 30% of participants have started trading cryptocurrencies within the past 1-2 years.
- 19% and 8% of participants began trading within the last year and six months, respectively.
- 27% of users are considered new entrants, drawn in by recent developments in the local market.
As a result of this influx of new users, the trading activities involving the Lira have significantly increased, making it the most popular trading pair in September and continuing into recent weeks.
Motivations and Factors Driving the Turkish Market
Young digital asset users in Turkey have diverse motivations for trading and investing in the market. While the majority of users focus on earning profits (66%), other driving factors include low transaction costs (33%), ease of monitoring (56%), and an affinity for the underlying technology (40%). Additionally, the absence of minimum deposits and enhanced security contribute to the attractiveness of the crypto market compared to traditional investment schemes.
Real estate investments are a popular pursuit among Turkish traders, with many individuals allocating a significant portion of their crypto proceeds towards this endeavor. It is worth noting that a substantial percentage of users hold at least $175 (5,000 TRY) in their wallets.
Despite being recognized as a growing digital asset market, some Turkish citizens remain skeptical about the local and global markets. Transaction volumes within the country currently rank fourth, following the United States, India, and the UK.
The Turkish government, in an effort to boost investments, is working towards improving local crypto regulations. However, concerns surrounding regulations and market uncertainties still exist and may hinder further adoption. The absence of proper global regulations and past industry collapses, such as the Terra and FTX incidents, have contributed to a decrease in investor confidence.
Therefore, Turkey is developing virtual asset guidelines to regulate major aspects of the local market. The anticipated laws, set to take effect in 2024, aim to align the country’s regulatory framework with international standards and eventually remove it from the Financial Action Task Force (FAFT) gray list.
