Tether’s Market Value Rises After Paxos’ BUSD Halt

02/22/2023 05:15 • Metaverse & Beyond • 137 views

It is reported that the market value of the stable currency issuer Tether (USDT) has increased by US $1.9 billion to US $70.3 billion since the news that the New York Financial Services Department ordered Paxos to stop issuing BUSD. At present, the stable currency market accounts for 52.6%, higher than the previous 51%.

Since Paxos stopped issuing BUSD, the market value of USDT has increased by US $1.9 billion, and its stable currency market share has reached 52.6%

Interpretation of the news:

The market value of Tether (USDT), one of the most popular stable currencies in the market, has increased by US $1.9 billion to US $70.3 billion after the New York Financial Services Department ordered Paxos to halt issuing BUSD. This decision has resulted in a significant increase in USDT’s market share, which now accounts for 52.6% of the stable currency market compared to the previous 51%.

The rise in Tether’s market value can be attributed to several factors. Firstly, the halt in BUSD issuance has made it difficult for traders to obtain a stable currency that is widely accepted in the market. As a result, many traders have turned to USDT as a viable alternative, which has caused its demand and market value to surge. Moreover, Tether is often viewed as a safe haven asset in times of market volatility, which has further increased its demand in recent weeks, as cryptocurrency prices have been volatile.

The rise in market value of Tether is significant, as it has been the subject of controversy in the past. Critics have raised concerns over the transparency and backing of USDT, as the company claims that each USDT is backed by one US dollar. However, it has been criticised for its lack of transparency in the past, as it has not provided any evidence to support its claims.

Despite this, Tether remains one of the most widely adopted stable currencies in the market. It is accepted by most cryptocurrency exchanges and is often used by traders to hedge against price swings of other cryptocurrencies. The increase in market value of USDT is likely to reinforce its position in the market and make it more attractive to traders.

In conclusion, Tether’s market value has increased significantly since the news that Paxos is halting BUSD issuance. The increase in demand for USDT is likely due to its wide acceptance in the market and its perceived safe haven status in volatile markets. Despite criticism over its transparency, Tether remains a popular stable currency choice for traders.

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