Tether (USDT) Enjoying Steady Trade Volume While Crypto Market Recovers

Most of the cryptocurrency markets are trying to come back from several days of bearish movement. Since Monday, Bitcoin (BTC) and a number of other cryptocurrencies have started to improve, and their prices have been moving upwards at our comfortable pace.

USDT / USD

Tether (USDT) managed to stay above the $1 mark (USDT/USD) for several days, which is a huge achievement for this stablecoin. It is pegged to the US dollar with a 1:1 relationship that makes it difficult for it to sustain any kind of movement away from the $1 level.

Why does USDT work so well

Tether managed this positive action at the expense of the poor performance of the rest of the cryptocurrency market. Since Tether is one of the best cryptocurrencies overall and the highest stablecoin, it is getting a lot of trading volume. Over the past 24 hours, its trade volume has remained above $62 billion and hasn’t moved much (it’s only down 0.64% in that period).

Tether has managed to maintain a market dominance of around 4%, which is incredible considering the thousands of cryptocurrencies out there and the huge market share that Bitcoin holds. With all of this that means Tether is an excellent cryptocurrency to hold money as a way to hold the value of that money.

Even if the US economy does poorly, Tether will still be very close to the $1 mark. Many crypto investors will move their digital assets to Tether when the rest of the market turns out to be very volatile. This helps them avoid the risk of losing their assets and gives them a way to move their digital currency quickly when the time comes to invest in another cryptocurrency.

There is a possibility that the broader cryptocurrency market will soon stop its bullish trend and suffer a pullback. If that happens, Tether trading volume could increase as investors take their money from Bitcoin, Ethereum (ETH), Solana (SOL) and others and pour it into the stablecoin.