Tether’s Volume Is Booming Amid Crypto Market Drop

Tether’s volume is now increasing while the crypto market crashing. The USDT volumes are now above the $31 billion as the sell-offs boosted the demand for other stabelcoins as we are reading further in the Tether news today.

USDT is now the fourth-largest cryptocurrency by market cap and it lines up at the top while some of the other assets dropped in value. At one point, during the peak of the selling, USDT rose to above $1.02 and other stabelcoins also broke above the dollar peg. USDT climbed to the top mainly because of the supply expansion in 2019 where the coin is in circulation doubling from more than 2 billion at the start of the year. Tether’s volume has been flat for weeks and placed the asset among the top 5 coins after the altcoins lost their previous high valuations.

It is still uncertain what drove the Tether supply and the critics of Tether hold the theory that the company prints new USDT intentionally. However, Tether claims that the demand is organic and that an altcoin is a tool that adds liquidity to the markets. The critics have not abated and there was also another class-action lawsuit filed before the US district court for the western district of Washington. The lawsuit pronounced a ‘’copycat’’ of an earlier class action that was based on the idea that iFinex manipulated the crypto market directly.

USDT still remains the most-used stablecoin while its market share decreased in 2019 to a 96% trading. The recent market crash brought another anomaly and the reported BTC trading volume reached up to $45 billion in the past day outpacing the levels of the USDT trading. This also means that a part of the BTC price discovery has moved beyond USDT and into the futures markets. This year, USDT increased to new highs and got away from the tides that could mean that Tether’s trading could be replaced by futures speculations.

The USDT coins achieved some higher turnover and popularity since most of the coins issues became ERC-20 tokens that were based on the Ethereum network which led to an increase in transfer moving Tether from the large-scale holders for more exchanges.