Tether Attracts Attention Despite The Market

Tether is pretty close to capturing the market cap before the dips. The researchers note that there is almost no correlation between trading volume and Tether. They think this adds to the uncertainties around Tether, the dominant stablecoin.

A study by the data tracker organization Kaiko showed that the increase in market capitalization this year has little to do with overall trading volume. “This is questionable given that the main use for this stablecoin is trading,” Kaiko commented in the research statement.

According to CoinMarketCap, the USDT token, which aims to peg Tether one-to-one with the dollar, is worth $82.9 billion. This amount had reached approximately $83 billion as crypto investors generally sold their crypto assets following the collapse of the Terra stablecoin in May of last year. Tether’s assets fell by nearly 20% in the second quarter of last year.

In the past, industry watchers have raised questions about whether Tether really backs its one-to-one fixation claim with sufficient reserves, and what the contents of the reserves are. The company reached an agreement with New York in 2021 to arrange for bringing its funds and lying about reserves. Tether has never admitted to any wrongdoing.