It seems that Tether will still be the top choice for traders despite the harsh criticism about the cryptocurrency not having the total fiat backing as well as the many banking troubles with iFinex. Let’s find out why this is the case in the latest Tether news today.
The market share of USDT is above 96 percent even though many stable coins aim to change this situation. It turned out that the fully fiat-backed stable coins are now used as a fiat off-ramp and the supply is only getting down. Despite the low expectations for USDT, Tether managed the coin supply and the worst thing that happened to it was a drop to the $0.85 during a panic episode in 2018. After that, USDT was still used.
In 2019, Tether expanded the supply to above 4,108 billion tokens and the Omni-layer coins were moved to the ETH network which became even cheaper and easier to transfer. The USDT transfers with the ERC-20 tokens picked up and expanded to more exchanges than ever. Instead of getting concentrated on small markets, Tether is now spreading to a longer list of crypto-to-crypto markets and the stabelcoin now facilitates arbitrage and moves the markets for the leading altcoins.
Tether will still have the skeptics and so far it managed to survive the liquidity of the crypto markets. The altcoin is still threatened by the USD-based futures markets but the bulk of BTC is now traded on spot markets. Tether is making forays into the futures trading similarly as the OKEx case and the USDT settled futures. Moving to the newer chains also means that the USDT is working on multiple markets.
The main advantage of Tether is increasing adoption. NiceHash adopted the cryptocurrency for the internal trades and now USDT is acting across all of the markets and does not show the pattern of minting which is followed by price pumps. Tether still correlates most of the activity with the major moves of Bitcoin. It is still used despite the fact that the company is a target of the class-action lawsuits that accuse the company of market manipulation. Tether of course, denied all allegations saying that the USDT demand is organic. Some sources, however, claim that China is an important point for the USDT demand.
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