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Tether (USDT) is a unique cryptocurrency. It is the first stable coin, which means that its value is tied to another asset, the US dollar. Tether’s concept is to create a currency that people can transfer from one exchange to another without fear of volatility. Tether’s most important application is the ability to transfer value between blockchains. Tether improves liquidity for the entire cryptocurrency market by facilitating exchanges between different cryptocurrencies. Tether’s future remains uncertain. You can visit bit-iq.de for more details.
It has been a question that has been asked for the last couple of months, actually since Bitfinex’s banking issues started in October, 2017. After hearing some intriguing speculation from various sources, we believe it is time to make some predictions about this. The tether coin’s future is bright, and it will be determined by the new features it introduces. Tether’s price recently skyrocketed, bringing the market capitalization to $78 billion. The current circulating supply is $77 billion, and no new supply is expected to be created, potentially creating scarcity.
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Will the price of Tether go up or down?
Tether’s price has mainly lived up to the ideal 1:1 peg in recent months, with minimal price movements causing it to reach a low of $0.998 and a monthly high of $1, which is its ideal price. The price of tether often fluctuates between 0.99 dollars and 1.0012 dollars per tether, and it hardly sees any movement beyond these ranges. Tether hit its lowest ever value in April 2017 when it dropped to $0.9213 and its highest ever price in December of that same year when it rose to $1.0413. Every unit that is in existence is fully backed by traditional currency that is held in reserve, but do not let this stability fool you into thinking that the coin is dull because it hardly ever exceeds a dollar. A lot of people invest in tether, exploding the market capital. The funny thing is that, unlike other coins, tether has an inverse relationship with bitcoin, so when the price of bitcoin falls, we see the price of tether increase. However, this increment is only a little bit because it is meant to be stable. In 2021, the tether’s value tripled, rising from $21 billion in January 2021 to $77 billion by December 2021.Tether has almost consistently managed to rank as the world’s third-largest cryptocurrency, although it’s currently at number 4, behind the Binance coin (BNB), Ethereum (Eth), and market leader Bitcoin (BTC) and way ahead of other stable coins like the USD coin, Gemini dollar, and DAI.
What will the price of tether be in 2022? That’ll be a dollar. In 2023, the same. USDT has to be pegged to the US dollar. That is the purpose of the coin, and that is why investors buy the coin. If tether loses its involatility, I see the market capital crashing because that’s the main reason investors are buying it. Tether is viewed as a rare “safe haven” for investors. A safe haven because the cryptocurrency market is extremely volatile and this particular coin has proven otherwise. When the price of any other digital asset crashes, traders usually choose to move their position to Tether quickly so as to minimise potential losses.
Price forecasts cannot be banked on when it comes to cryptocurrency because of the level of volatility involved, but price predictions could be an indication of investors’ perception. Since investors are the ones who make the buy and sell decisions, they basically control the market through demand and supply. With tether, it is very different because their number one aim is to remain stable, so it rarely moves far from a value of one dollar.
Tether adds liquidity to the crypto markets and is an important part of the burgeoning decentralised finance (Defi) sector. It is also worth noting that, as the overall cryptocurrency market begins to recover from recent crashes, more people are turning to tether to trade their existing crypto assets for higher-priced coins. Tether has the potential to change the way people store value and transact with one another all over the world. We hope you will continue to hold the tether and see what happens. The cryptocurrency community is very excited about the possibilities that tether brings to the table, and we hope that it can help make our lives easier.
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