Tether (USDT) currently sits within the top 10 cryptocurrencies on the market. In addition, it is the only top 10 cryptocurrency to have experienced a price increase throughout the last week. One week ago on October 22nd, 2018, Tether (USDT) was priced at $0.994. It dipped slightly over the next couple days but stayed stable, increasing gradually to hit a high of $0.995 on Saturday, $0.997 on Sunday, and finally $0.998 on the morning of Monday, October 29th.
Tether (USDT) is a popular stablecoin which is pegged to the US dollar. Stablecoins are attractive to investors as they are theoretically subject to less volatility, rising and falling with the correlated fiat asset. Though, Tether broke its peg, falling below the US dollar in mid-October, 2018.
During Tether’s slide below its peg, a new stablecoin, The Gemini Dollar (GUSD) broke its peg in the other direction, reaching $1.19. The crypto community was uneasy about Tether’s slide, particularly because the peg broke. The broken peg calls into question the stability of the stablecoin, which is its main value in the first place.
Courtesy of CoinMarketCap
While the stablecoin has experienced a positive week regarding price increase, the rest of the cryptocurrency market has not seen such fate. In fact, Tether (USDT) was the only coin in the top 10 to see an increase in the last seven days. Last week, lower market cap cryptocurrencies experienced rapid price increases.
Bitcoin (BTC) price, Ethereum (ETH) price, and Ripple (XRP) price have all taken dives over the last seven days.
As a company, Tether is not among the most transparent in the industry. In fact, they are relatively private in most cases. Is each USDT coin backed by a US Dollar? Without an answer to this question, it’s difficult to form a clear conclusion regarding why Tether’s price has increased.
Though, the Tether community is pleased to see the stablecoin rise back to meet its USD peg of $1. Many Tether supporters are poking fun at others who experienced FUD and cashed out when it initially broke its peg.
Though we can’t know exactly why Tether (USDT) is experiencing a price increase, it appears to be rising steadily and that it is currently the only top 10 crypto doing so.
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