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Tether is the least risky stablecoin in the cryptocurrency market

Tether has emerged as the leader among stablecoins, which are digital currencies tied to a fiat asset such as the dollar, and has seen a sharp rise since March amid the banking crisis in the US and regulatory measures that have led to a reduction in investment in the crypto sphere and outflow of funds to safer tokens, according to Reuters.

Tether's value is pegged 1-to-1 to the dollar and the supply is limited to around 85 billion tokens. Demand for it has been growing since mid-April, when the ratio even reached 1.002.

Stablecoins like Tether are more like a savings tool and a means of facilitating transfers between cryptocurrencies such as Bitcoin and Ethereum, as well as providing collateral for derivative transactions.

Tether's growing premium reflects increased confidence both in its dollar peg and the presumed safety of this stablecoin from the US Securities and Exchange Commission (SEC).

Tether is owned by iFinex Inc, registered in the British Virgin Islands, which also owns the Bitfinex cryptocurrency exchange.

Another cryptocurrency, USDC, owned by Circle, has suffered due to its ties to the bankrupt SVB bank and the SEC's close attention to the fintech industry and crypto firms.

Another competitor, BUSD or Binance USD token, is experiencing a decline after announcing the discontinuation of new token issuance after US regulators labeled the asset an unregistered security.

As Tether is considered less US-oriented, this means lower regulatory risk.

On CoinMarketCap's database, Tether has risen to 3rd place with a market capitalization of $82 billion and a share of 6.83%.

The difference between Tether and Bitcoin is that Tether provides a secure peg to $1, while Bitcoin is considered a safe haven from currency debasement. The latter has grown by about 73% this year.

Forex Award | World Forex Award | Forex
Forex Award | World Forex Award | Forex
Forex Award | World Forex Award | Forex
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