The cryptocurrency market is going through an extended rough period. Part of this is due to a poor global economy and part due to uncertainty and a lack of confidence in the crypto market. Even as many cryptocurrency tokens remain volatile or continue to descend, a few are expected to remain stable no matter what. One of those is the stablecoin Tether (USDT), ranked number 3 on the cryptocurrency market overall.
Is Tether Being Affected?
Because of all the uncertainty in the market right now, Tether is considered a safe option. This stablecoin is designed to not change price very much, but any investments in Tether can quickly be moved from one crypto coin to another. That makes it a very useful and fluid coin for cryptocurrency traders.
Over the last few months, we saw the collapse of the crypto stablecoin Terra. That event had some effect on Tether, causing consumers to lose confidence in stablecoins across the board. We saw Tether’s rate dip at that point well below the established norm. Usually, the USDT rate will stay right around $1, deviating from that by just a few fractions of a cent.
When Terra collapsed, Tether’s rate dropped down to $0.9959 from $0.9999. That may not seem like much, but it stood out on Tether’s history as a major blip. The price recovered quickly from there, but some consumers had their confidence in crypto coins irreversibly shaken right then.
Over the past few months, Tether’s rate hasn’t changed very much. However, Tether’s current trade volume is down 5.48% over that least 24 hours.
What’s Going to Happen to Tether?
Every week or so, there’s a new article published by industry analysts claiming that Tether is going to collapse at any moment. It’s a ticking time bomb waiting to go off, they say, but that’s not what we’ve seen from this crypto token.
Tether has managed to weather a lot of storms since it’s been on the market, including intense government inquiries and investigations as well as questions about where its resources come from and how the Tether tokens are backed. Tether has seen dips here and there in trade volume and investors, but it’s managed to hold onto its top ranking stablecoin status and likely will continue to do so.