The top ranking stablecoin, Tether (USDT), is holding at $1 (USDT/USD) even while much of the cryptocurrency market is falling today.

How the Market Looks

We are seeing mot of the major crypto tokens trend down today, with Bitcoin (BTC) falling 1.95% and Ethereum (ETH) down 7.25%. Across the board, there is a bearish trend taking place today, with BNB (BNB) falling 6.06% and Solana (SOL) down a whopping 9.25%.

How much of this is due to recent inflammatory statements from the European Central Bank President Lagarde and how much is due to inflation? There is talk of increased regulation and a strong call for it by government officials around the world, which could soon put cryptocurrency under the thumb of central banks and government policymakers rather than enjoying its continued status as a decentralized unregulated currency.

This kind of doubts and talking points have plagued the crypto industry for years, but that type of rhetoric is definitely heating up as the crypto market suffers a rough year, with billions in dollars lost among crypto investors since Bitcoin had its all-time high last November. The market is down overall from there, and only some of the smaller cryptos are seeing any gains from month to month.

Tether Holding Strong

Of course, Tether isn’t going anywhere at the moment. The crypto is experiencing a trade volume boost of 5.31%, which brings its 24-hour trade volume up to $59 billion in US dollars. Despite a slight dip recently, Tether is back where it is supposed to be and staying heathy. It’s unusual for this stablecoin to fall far at all, and even a deviation of a couple cents from the $1 mark is very out of character. However, if there is a market run caused by the growing pressure of inflation and dipping rates, Tether will see some action that could push it into a danger zone, and then we will see if the coin is really backed like it is supposed to be by actual US dollars.