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Tether (USDT) continues to grow as it passes $80 billion

Although Tether (USDT), hasn't moved much in recent weeks, its market capital continues to grow and it crossed $80 billion (USDT/USD this week)....
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Although Tether (USDT), hasn’t moved much in recent weeks, its market capital continues to grow and it crossed $80 billion (USDT/USD this week). The stablecoin, USD Coin (USDC), is the second most rated stable coin and the highest-ranked crypto coin. Together, they account for 70% of stablecoin market share.

Tether was embroiled in controversy for much of the past year over its dollar backing. The creators of the Tether token claimed that every token was supposed to be backed with a US Dollar. However, government investigations revealed that some Tether tokens were backed by US bonds and other non-conventional fiscal options. An inquiry by the government found that 2.65% of its holdings actually were in US dollars.

After being fined, Tether has emerged from the controversy and has managed to remain strong. Tether’s market capitalization is approximately $68 billion. Its trade volume exceeds $68 billion.

Tether was designed to resist market volatility, which causes crypto tokens such as Bitcoin to see price fluctuations on a regular basis. Tether’s price doesn’t fluctuate much and is very close to the US dollar. Tether can therefore be used to trade between currencies or to hold on to a stable, decentralized finance currency when the market is volatile.

Investors may transfer their assets to Tether if the price of cryptos drops or rises. This will allow the market to become more stable and predictable. Tether will continue to enjoy high trade volumes as long as the market remains volatile.

Tether should grow but traders should not view it as an investment. They should use it when they need to keep their assets liquid, but not at great risk.

Where has Tether Come From?

Tether was first launched in 2014. It has since risen to be the third most popular cryptocurrency coin, just behind Bitcoin (BTC) and Ethereum (ETH).

In 2017, allegations of dishonest backing claims were made for the first time. This put Tether and its claimed 100% U.S. Dollar backing under scrutiny. Similar allegations have been made every year since then. The question was finally resolved last year by a Commodity Future Trading Commission investigation and a fine.

Tether’s trade volume suffered a decline last year during the investigation, but it has rebounded and remained strong throughout this year.





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