In the past year, Tether (USDT) has emerged as one of the go-to stablecoins for trading cryptocurrency. Since March of this year, USDT has generally been trading at a premium against the US Dollar, which has seen its supply and market dominance reach incredible heights. CoinMarketCap data shows that the stablecoin is priced at $1.007 after gaining 0.06% in the last 24 hours.

Blockchain analytical firm Kaiko found that USDT has mostly been trading at a premium against the US Dollar throughout April on centralized exchanges. The stablecoin's lockdown of its previous highs has been evidenced further by BeInCrypto data, showing its supply has increased by more than $15 billion in the year-to-date, while its market domination is now at almost 63%.

Unfortunately, Tether’s incredible rise has seen it become plagued by controversies. Crypto investor Mario Antretter has raised questions of the stablecoin’s auditing and if the funds are backed, echoing the same sentiments of many in the industry. USDT’s operator, however, did release a statement saying it has been a target of “outdated, inaccurate, and misleading coverage and allegations”.

On the other hand, competitors such as USDC and Binance USD have not been faring so well in the past year. Per BeInCrypto data, the supply for USDC’s has reduced by over $14 billion this year, losing its dollar peg in March and citing issues with diminishing confidence from crypto investors. Binance USD has also struggled to get back on its feet this year, with a supply now at less than $7 billion and concerns around compliance after delistings.

While the regulatory and banking troubles of its competitors have certainly worked in Tether’s favour, analysts additionally claim there’s a correlation between USDT supply and the surge in Bitcoin’s prices. A study by BDC Consulting does indeed show a “strong and statistically significant” correlation between the two. With the stablecoin being the most popular choice for traders of cryptocurrency, it looks set to remain at the top of its game for at least the foreseeable future.



Other News from Today