The increasing demand for cryptocurrencies during the coronavirus pandemic as means of hedging against the risks of inflation led to the brightness of another currency, Tether, becoming more attractive than the most famous digital currency, Bitcoin.
Tether (USDT) aims to mirror the value of the US dollar and create a stable cryptocurrency used like digital dollars.
Coins that serve this purpose of being a stable dollar substitute are called “stable coins.”
According to Tether’s website, it converts cash into digital currency to anchor or “tether” the value of the coin to the price of national currencies like the US dollar, the euro, and the yen.
Tether is the world’s most used currency
According to CoinMarketCap, Tether has become the most used cryptocurrency in the world. Its monthly trading values hiked in August to reach $1 trillion, surpassing Bitcoin by 49%.
As the world’s most stable cryptocurrency, Tether is also the preferred currency for most cryptocurrency traders.
This comes at a time when trading in the Bitcoin currency during the same month exceeded $702 billion.
Ethereum cryptocurrency came in third place, with transactions amounting to $367 billion within 30 days. The data also indicates that Ethereum witnessed the highest rise in market value during 2020.
In the past eight months, the market value of the four most expensive cryptocurrencies increased by 210%, reaching $44 billion at the beginning of this week, compared to $14.2 billion in January.