Why are transactions involving the Turkish currency on the rise? What are its prospects? In early June, the proportion of the Turkish lira (TRY) in total trading volume on crypto exchanges reached a record high of 19% among all fiat pairs.
There are several key factors that have contributed to the sharp rise in popularity of the Turkish lira on cryptocurrency exchanges:
1. Depreciation of the lira due to unprecedentedly high inflation in the country, which reached 75.5% YoY in May. This is the highest figure since year-end 2022. The accelerated depreciation of the national currency traditionally is prompting households in developing countries towards cryptocurrencies as a more stable asset.
2. Heightened volatility of the lira exchange rate on the back of the inflation crisis. The lack of stability of the Turkish currency due to inflation again creates additional demand for cryptocurrencies.
3. The exclusion of the pound and Australian dollar pairs from the listing led to an automatic redistribution of volumes in favor of the remaining trading pairs, including the lira.