Why has the price of USDT been consistently at $1 (Why has USDT been rising consistently)?

08/12/2023 16:50 • Metaverse & Beyond • 73 views

Why has the price of USDT been consistently at $1? USDT is a globally renowned Bitcoin trading platform.

USDT (United States Dollar Tether) is a peer-to-peer network payment protocol that enables frictionless, secure, and fast transfers, while providing real-time settlement services to corporate clients.

According to data from Coinmarketcap, as of April 2, 2019, USDT ranked 9th in terms of market capitalization in the entire cryptocurrency market, accounting for around 80% of the total market capitalization, and its market capitalization continues to grow, currently exceeding $10 billion.

Why has the price of USDT consistently stayed at $1?

One of USDT’s founders, Daniel Larimer, recently explained that this statement is accurate, but we believe it to be a fact that signifies progress in the project and the long-awaited development. However, I still believe that USDT has a very strong fundamental value – it does not rely on any other institution or company to conduct business. We have seen many investors shift their focus to BTC rather than other digital assets; therefore, if this trend continues, we will lose confidence.

Why has USDT been rising consistently?

Why has USDT been rising consistently? Today, let’s discuss the value of USDT.

First, let’s take a look at what USDT is. It is pegged 1:1 to the US dollar and is a stablecoin based on Ethereum.

USDT is a decentralized trading system that allows anyone to engage in peer-to-peer transactions, instant settlements, and margin investments (such as earning interest through collateralized borrowing). Moreover, this digital currency is not higher than 1 USDT or 2 BTC, which is why USDT has been rising in the past year:

In early 2018, the price of USDT was less than 1 cent, but now it has reached $4; it started rising in March 2019, reaching nearly $7 in May this year, but the increase was only around 5%; in the first quarter of 2020, Bitcoin’s price exceeded 20 times, and its market capitalization surpassed Bitcoin to become the second-largest cryptocurrency, even surpassing Bitcoin Gold.

Looking at the recent quarters, besides Bitcoin, there are other mainstream assets in this bull market: Ethereum, Litecoin, XRP, LTC, etc. They are among the most popular stablecoins in the market because these projects operate on the Ethereum platform.

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Why has the price of USDT been consistently at $1 (Why has USDT been rising consistently)?

Why has USDT been rising consistently?

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