Tether (USDT) Enjoying Steady Trade Volume While Crypto Market Recovers
Timothy St. John • 2 min read
Most of the cryptocurrency market is trying to come back from several days of bearish movement. Since Monday, Bitcoin (BTC) and a number of other cryptocurrencies have started to improve, their rates moving upward at our leisurely pace.
Tether (USDT) has managed to stay above the $1 (USDT/USD) mark for several days, which is quite an accomplishment for this stablecoin. It is linked to the US dollar with a 1:1 relationship that makes it difficult for it to sustain any kind of movement away from that $1 level.
Why USDT Is Doing So Well
Tether has managed this positive action on account of the poor showing from the rest of the cryptocurrency market. Because Tether is one of the top cryptos overall and the highest ranked stablecoin, it gets a lot of trade volume. Over the last 24 hours, its trade volume has stayed over $62 billion and has not moved much (it is down just 0.64% in that period).
Tether has managed to retain a nearly 4% market dominance, which is incredible considering the thousands of cryptocurrencies that are out there and massive market share that Bitcoin holds. With all this means is that Tether is an excellent cryptocurrency to hold money in as a means to retain that money’s value.
Even if the US economy does poorly, Tether will still stay really close to that $1 mark. A lot of cryptocurrency investors will move their digital assets over to Tether when the remainder of the market is proving too volatile. This helps them avoid the risk of losing their assets and gives them a way to move their digital currency around quickly when it’s time to invest in one of the other cryptos.
There is the possibility that the wider crypto market will stop going bullish soon and experience a downturn. If that happens, trade volume for Tether could increase further as investors take their money from Bitcoin, Ethereum (ETH), Solana (SOL) and others and pour it into the stablecoin.