Is Doge so stealthy? The global economy is still struggling to come out of the stiff shackles posed by many reasons in recent times, including the Russian invasion of Ukraine, the slowdown in China, and the aftermath problems of the COVID pandemic, to name a few.
The soaring inflation and consistent pressure of rising fuel, food, and fertilizer prices have not just put cost-of-living in many countries unbearable for their residents but also made them look out for opportunities to save their savings from diminishing.
From what was once deemed a niche investment, cryptocurrency has now become one of the top alternative investment opportunities for many investors worldwide. The Turks are not an exception to this trend. Per the official report, Turkey’s inflation has broken its 25-year-old record and rose to 85.51% last month.
Due to such enormous inflation and a nearly 50% loss in Lira’s value, Turks now seem to resort to the crypto sector. Per reports circulating on the crypto sphere, around 40% of adults, irrespective of gender, either own digital currencies or have been involved in crypto trading in the previous 6 months. The number is expected to reach 60% in the coming 6 months.
Dogecoin Becomes Turks’ Favourite Crypto
In the past 30 days, Turkish residents traded more dogecoin (DOGE) than other significant digital currencies and more than double the total volume of bitcoin and Ethereum. According to the top 3 Turkish exchanges, Turks traded almost $700 million in BTC, ETH, and Doge, with dogecoin leading the way with $380.3 million.
BTC Turk, Bitexlive, and Bitexen are the three exchanges that witnessed these transactions last month. At the same time, Bitcoin and Ethereum traded for $154.4 million and $142.6 million in volume, respectively.
Ever since the famous billionaire Elon Musk acquired sole ownership of Twitter the previous month, the meme coin witnessed an increase to almost double in its price. Perhaps this may be why Turks wanted to benefit from the pump. The CEO of Tesla and SpaceX is often seen tweeting in favour of the DOGE.
Lira Decline Led Turkish Head Toward Crypto
Even though government officials are critical of trading cryptocurrencies and have introduced new regulatory amendments regarding KYC and AML, the Turk people are trying to seek refuge by investing in cryptocurrencies. The ongoing super decline in the Lira’s price and the high inflation due to the country’s economic crisis could be the major reasons for the spike in crypto investing in Turkey.
Turkey is not alone in this regard; countries like Venezuela and Argentina are also among the countries where digital currency trading spiked because of inflation and their state’s rapid fall.
On the other hand, the Turkish ruler, Tayyip Erdoğan, has advised his nation against cryptocurrency trading on multiple occasions.
However, talking about blockchain applications and metaverse at a recent summit, he admitted their effective benefits, such as administering supply chains. He further announced that Turkey is initiating an e-Human project and would also build its own metaverse. Following the lead of countries like Japan and South Korea, Turkey is also introducing web3 initiatives.
Featured image from Pixabay and chart from TradingView.com