Over 50% of spot trading pairs on Poloniex appear to be ‘dead’

Key Takeaway:

The data from Poloniex’s exchange reveals a significant lack of trading activity, with over 50% of spot trading pairs showing little to no volume. The platform heavily relies on USDT, raising concerns about regulatory scrutiny on Tether and its potential impact on Poloniex’s operations.

Poloniex Exchange Data Analysis

Poloniex, acquired by Justin Sun in 2019, currently shows a concerning lack of trading activity, with 521 out of 981 spot trading pairs displaying less than $1 or even $0 in daily volume. This accounts for approximately 53% of all pairs listed on the exchange as of May 13. The platform’s reliance on USDT is evident, with 810 pairs tied to the stablecoin, representing almost 83% of all spot trading pairs.

Concerns Over USDT and Regulatory Scrutiny

The heavy reliance on USDT on Poloniex raises concerns, especially in light of recent statements by Ripple CEO Brad Garlinghouse regarding potential regulatory scrutiny on Tether. While Tether’s head Paolo Ardoino dismisses these rumors as FUD, the implications of regulatory pressure on USDT could have significant repercussions for Poloniex. The absence of a USDT/USD trading pair on the platform could potentially impact operations in case of a surge in USDT withdrawals prompted by regulatory concerns.

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