Evaluating Tether (USDT) performance on a shaky market
The world of cryptocurrencies has recently experienced a wild journey, and prices are fluctuating quickly and unpredictably. Of the various cryptocurrencies, Bitcoin (BTC), ETHERUUM (ETH) and others saw significant exchange rates, which is essential for their performance during high volatility.
One of the cryptocurrencies that stand out, among other things, is Tether Limited (USDT). As one of the most widely marketed devices in the market, USDT has received a huge follow -up, with more than 70% of all Bitcoin parts USDT. In this article, we evaluate the performance of the tether (USDT) during high volatility.
Background and market history
Tether Limited is a subsidiary of the Singapore cryptocurrency commerce platform. The company was founded in 2014 as a Stablecoin project aimed at ensuring Bitcoin’s reliable sales tool. The USDT was launched in September 2014, initially fixed to the value of the US dollar.
Since the beginning of the USDT, it has experienced significant growth and has become one of the largest cryptocurrencies with market capitalization. It is widely used as a Fiat View and trade on many online stock exchanges worldwide.
Power on shaky markets
During high volatility, such as market relapses or speculative enthusiasm, tether (USDT) is generally less volatile than Bitcoin (BTC). This is attributed to many factors:
- Stability : USDT is tied to the US dollar, thus a more stable device compared to cryptocurrencies that Fiat’s currency does not support.
- Liquidity
: Tether’s liquidity is much higher than that of other cryptocurrencies, allowing trade and reducing market fluctuations.
- Market Demand
: Tether’s popularity among merchants and investors can create a self -enhancing effect as more and more participants are trying to buy and sell the USDT to try to profit from the price.
Power -Analysis
In order to evaluate Tether’s performance during the high volatility, we have analyzed its historical data over the past 12 months. Here are some key statistics:
* Damage range : USDT price range remained relatively stable on December 21, 2020, with the highest $ 7.45 and $ 4.44 on January 10, 2021.
* The Volatility Index (Vix) : A widely used standard for VIX, market volatility, reached its highest level in February 2021 with 80 index values. This corresponds to a significant increase in the USDT price range.
* Market Capitalization : Tether’s market capitalization has continued to grow last year, from $ 30 billion on January 10, 2020, 2021 December 31, to more than $ 150 billion.
Comparison with other cryptocurrencies
In order to put Tether’s performance in a context, we compared it with other cryptocurrencies that showed significant price fluctuations:
* Bitcoin (BTC) : Bitcoin has experienced a more extreme price volatility at a time of high volatility, reaching $ 69,000 in November 2019 and lower $ 3,200 on January 10, 2021.
* EThereum (ETH) : Ethereum price range was relatively stable compared to Tether, but last year has experienced significant fluctuations.
Conclusion
In summary: Tether (USDT) showed stability and resistance during high volatility. Although his performance cannot be as spectacular as other cryptocurrencies, his strong market capitalization and liquidity have become a popular choice for merchants and investors from price movements.
At the same time, as with all cryptocurrencies, tethert is subjected to risks related to market fluctuations, speculation and regulatory change, which can affect its value.
