The controversial USD-backed cryptocurrency Tether finds its way in our crypto news again, this time for losing a stunning 30 percent of its total market cap due to the rise of more popular stablecoins on the market.
The tether token had a market cap of more than $2.8 billion almost two weeks ago. Now, tether reached a valuation of less than $2 billion which is a second time this stablecoin reaches a low like this since January when the token went through a decline for the first time.
This recent decline could be the result because of the token’s discount to its value of $1.00, a huge increase in competition and the rumors about the stability of the issuer’s banking relations.
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Also, crypto exchange Tether Limited and Bitfinex, sent more than 50 million USDT to the Tether treasury address which shows that all of these tokens have been redeemed for their nominal value.
According to Mike Novogratz, Tether is to blame for many of its own problems because they have been operating with a low level of transparency when compared to its competitors such as the Gemini Dollar.
However, in the long run, we shouldn’t be surprised if USDT gets obscured by one of the newer more popular stablecoins mainly USD Coin, Gemini Dollar, and TrueUSD.
Most recently, Coinbase announced that they partnered with Circle which governs the issuance of the dollar-backed USD Coin. Now users can buy and sell USDC through Coinbase which makes this stablecoin more popular and this can also be considered as an influential reason why tether dropped in value.
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