The recent price trend of Tether (USDT) has created great concerns among traders over the past few days. The digital currency has seen a notable decline in its value, one which its traders never expected. Tether claims each of its tokens is backed by one US dollar. The recent declines in the value of the coin have resulted in a very hot debate in the digital currency space.
Many traders have been asking if Tether (USDT) is actually telling the truth when it says one USDT is backed by one USD. The answer to this question is rather obvious given that the value of the coin recently declined by about 10 percent.
Tether (USDT) has been trading within the $1 range. However, since the coin broke out of its historical tight range, more investors are beginning to lose faith in the digital currency. On the 15th of October, the value of the digital currency tested the $0.90 level on Kraken – a trading platform based in San Francisco. This has left digital currency traders in worry considering the fact that Tether (USDT) is the best stablecoin so far.
About Tether (USDT)
Tether (USDT) is an issuer of a digital currency with a twist. The tokens of Tether are meant to be stable, unlike BTC that experiences a high volatility rate on a daily basis. The value of one USDT has historically remained close to the $1 mark because Tether said each token is backed by one USD in its bank account.
The coins have become very popular over the past months because a lot of traders use the coins in the place of the U.S dollar. The coins of Tether are much easier to transfer between trading platforms, as well as other online platforms, due to the fact that they don’t pass through a banking system.
Tether Is Yet To Convince The Public On Whether Its Coins Are Backed By US Dollars
Tether has continually said its tokens are backed by USD. Nevertheless, the firm is yet to provide evidence of its holdings to the general public. People have also been asking questions regarding the relationship between Bitfinex and Tether.
Some traders have also said that the trading in the coins of Tether on the trading platform has helped to increase the value of Bitcoin (BTC). Bitfinex is one of the largest digital currency trading platforms in the world, and the CEO of Tether is the same as Bitfinex.
The Importance Of Tether To Digital Currency Investors
Despite the $2.4 billion market valuation of Tether, the coins of Tether play a gigantic role in digital currency trading platforms. As of October 15th, Tether’s coins are second on the list of digital currencies with the highest daily trading volume after Bitcoin (BTC).
There are lots of stablecoins in the crypto space. However, none of them have been able to come close to challenge the popularity of USDT. Nevertheless, the digital currency stands a chance of losing its value if the firm fails to restore it to the $1 range.
Tether (USDT) Price Today – USDT / USD
At the time of writing, one USDT is valued at 96 cents after a decrease of about 3 percent over the past twenty-four hours. The current market cap of the digital currency is $2.41 billion and its trading volume over the past twenty-four hours is $5.24 billion.