Tether performance assessment (USDT) on the unstable market
The world of cryptocurrencies has recently had a wild ride, and prices change quickly and unpredictably. Among the various cryptocurrencies, Bitcoin (BTC), Ethereum (ETH) and others have recorded significant price fluctuations, which in making their performance in a time of high volatility.
One cryptocurrency that stands out, among other things, is limited (USDT). As one of the most frequently traded assets on the market, USDT has gained huge fans, with over 70% of all Bitcoin shares. In this article, we will assess the performance of Tether (USDT) in times of high variability.
Background and market history
Tether Limited is a subsidiary of Bitfinex, a Singapore cryptocurrency trade platform. The company was founded in 2014 as a Stablecoin project, which aims to ensure a reliable resource of values for Bitcoin. USDT was issued in September 2014, initially determined to be the value of the American dollar.
From the very beginning, USDT has noted a significant increase, becoming one of the largest cryptocurrencies according to market capitalization. It is widely used as a deputy currency Fiduat and is traded on many online exchanges around the world.
performance on volatile markets
In periods of high variability, such as market slowdown or speculative enthusiasm, imprisonment (USDT) is usually less variable than Bitcoin (BTC). This can be assigned to several factors:
- Stability : USDT is set to an American dollar, which makes it a more stable resource compared to cryptocurrencies that are not supported by the Fiat currency.
- liquidity : Tether fluidity is much higher than in the case of other cryptocurrencies, enabling easier trade and reduction of market fluctuations.
- market demand : The popularity of Tether among traders and investors can create a self -determining effect, because more and more participants are trying to buy and sell USDT, trying to use the price.
performance analysis
To assess the performance of Tether in a time of high variability, we have analyzed its historical data over the past 12 months. Here are some key statistics:
* Price range : Price range for USDT remained relatively stable, with the highest USD 7.45 on December 21, 2020 and the lowest USD $ 4.44 on January 10, 2021.
* Volatility rate (VIX) : VIX, widely used market variability, reached the highest level in February 2021, with the value of index 80. This corresponds to a significant increase in the USDT price range.
* Market capitalization
: Market capitalization Tether is constantly growing over the past year, from $ 30 billion on January 10, 2020, to over $ 150 billion on December 31, 2021.
comparison with other cryptocurrencies
To put Tether performance in context, we compared it with other cryptocurrencies that showed a significant price variability:
* Bitcoin (BTC) : Bitcoin experienced more extreme price fluctuations in a time of high variability, with the peak reached USD 69,000 in November 2019, and low level $ 3,200 on January 10, 2021.
* Ethereum (ETH)
: The Ethereum Price Plant was relatively stable compared to the imprisoned, but over the past year has experienced significant fluctuations.
Application
To sum up, Tether (USDT) showed stability and resistance in times of high variability. Although its results may not be as spectacular as some other cryptocurrencies, its strong market capitalization and liquidity have made him a popular choice for traders and investors who want to benefit from price movements.
However, as with any cryptocurrency, Tether is subject to the risk of market fluctuations, speculation and regulatory changes that can affect its value.
