The market cap, as well as the volume of Tether (USDT), has been soaring since traders use them exclusively. It is not a concern for the traders, in the short term. They do not look at how the coins are pegging, being supportive, or leading as long as it mirrors $1 USD for them. In spite of the lack of clearness, its centralization, plus business dealings, USDT dictates the stable coin market. This coin has 30X more market capitalization than its next-door rival, the TrueUSD (TUSD).
With a lot of diverse asset looping and techniques of pegging stablecoins to real-world prices, each coin must function well. A stablecoin can be a perfect one only if it provides the gains of a decentralized cryptocurrency. The value of the coin should be stable during volatility.
No Demand For USDT From The US
Taking all the above-said features into consideration we can conclude that Tether’s stability is remarkable. It is the most traded stablecoin following its initiation in 2015 in spite of tides in volume. Regardless of this, the coin is not the most traded one in the US exchanges. Its lack of banking lucidity, as well as centralization, weakens it, making it a less viable option for actual businesses/enterprise.
Tether, in fact, need not legally reveal the place where it holds billions of dollars on deposit. Though, sources and evidence say that the funds are with Noble, a Puerto Rican bank.
Chinese Requirement Shoving USDT Amount
The upsurge in volume plus market cap in USDT is due to the mushrooming of C2C (crypto-to-crypto) exchanges, especially in China. Out of 10 global exchanges, 5 with high volume trading for USDT are Chinese.
Supported For The Time To Come?
In order to oust Tether as the de-facto digital stablecoin, any coin has to go a very long way. If the coin has to be superior to USDT then it has to have maximum banking transparency. Tether is enjoying its indisputable achievement at pegging in a very fine instability band over the years. Thus to beat it a stablecoin, the new coin has to be superior in all respects.
With all the commotion and the different opinions with regard to ‘Ode to nothing’ we will have to wait and watch whether stablecoins will just be another flash in a crash.
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