The last few weeks haven’t been good for Tether as the most dominate stablecoin is starting to lose its charm. The cryptocurrency seems to be losing its USD peg and it may be unable to survive this volatility if the peg is not restored. Right now, Tether (USDT) is recording the highest trading volume out of all the other cryptocurrencies apart from Bitcoin (BTC). Most of the trading volume right now is coming from sellers. If things continue like this, Tether may lose its position to competing stablecoins like Circle and Gemini.
Tether (USDT) Price Today – USDT / USD
Yesterday, OKEx announced that its users can now deposit Paxos Standard (PAX), Gemini Dollar (GUSD), TrueUSD (TUSD), USD Coin (USDC). The pegged coins will be tradable against Tether (USDT) and Bitcoin (BTC). About three hours after they made the announcement, the coins were available for withdrawal.
Tether (USDT) Is Losing Its Charm
As reported by smartereum.com, Tether (USDT) fell against the USD thus losing is peg. Even if Tether later recovered relatively well against the USD, the fall discouraged investors and they started putting interest in other competing coins. Tether (USDT) traded as low as $0.85 against the USD yesterday. The competing Stablecoins will give traders an opportunity to know if Tether is going to stand the test of time. Trading Tether against the other Stablecoins will help investors determine if Tether (USDT) is still as reliable as it used to be.
It’s true that some critics have accused major cryptocurrency exchanges like Bitfinex of manipulating the price of Bitcoin with Tether. While this allegations are still unfounded, the fall against the USD and the cut in market capitalization of Tether may push the platform to become more attentive. It may even lead to a the call for a long overdue audit.
The daily volume of TUSD on Binance is already as high as $27 million while the daily volume of PAX is $11 million both are paired against USD. Both Stablecoins are trading at an 8% premium against Tether (USDT). USDC and GUSD are both trading at similar premiums to Tether but their trading volume isn’t as high as the other two coins.
In other news, BitPay, announced that it now accepts settlements in USDC and GUSD but not Tether. This was rather surprising since Tether is still the dominant stablecoin in the market. It also caused some anxiety among investors who feel that BitPay may have excluded Tether (USDT) because the Stablecoin is losing its charm.
Tether (USDT) Price Analysis
With a market capitalization of $2,205,842,416 Tether is currently trading at $0.977584. Even if it is up by 1.43% against the USD, it is still not up to $1. Against Bitcoin, it is up by 2.10%. The next few days of trading will if there is any change in the price action of Tether.