Tether (USDT) Price Analysis

Introduction

Tether is a cryptocurrency designed to ensure that each token is represented by its underlying asset in the form of a US dollar. Tether was released on the Omni, Ethereum, Tron, EOS, Liquid, and Algorand blockchains. The coin is connected to fiat money, including the dollar, euro, and Japanese yen. The token is issued by Tether Limited Corporation, which claims that the coin is backed by a real stock of assets in the accounts, in other words, 1 million tokens is equal to 1 million fiat money.

Since the beginning of May 2020, the capitalization of the most popular stablecoin Tether (USDT) has grown by 45%. The asset now ranks third in ratings like or CoinMarketCap , breathing down the neck of Ethereum. It may take 9 months for Tether to shift the second-largest cryptocurrency if the current rate of coin issuance is maintained.

Achievements and highlights

Distribution of USDT is possible through money transfers to Tether Limited accounts, and the company itself issues the corresponding number of coins, which can be provided with fiat money. Traders can transfer and buy USDT on exchanges.

What was the way USDT gained such an incredible popularity among the crypto-community?

The token was created in 2015 by Tether Limited. Bitfinex was the first to introduce a coin into the system for conducting transactions. Almost immediately after the release of the cryptocurrency, its integration was presented on the American exchange Poloniex.

The founders of the company are CEO Philip Potter and CFO of the Bitfinex exchange Giancarlo Devasini. Initially, the token was named Realcoin. The coin was ordinary and could not compete with popular altcoins. After a series of updates, it changed the name and released brand new technology. It was necessary for survival in the digital world of money.

On March 14, 2019, the company claimed that tokens are backed not only by US dollars, but also by loans issued to related companies of Tether Limited.

On April 30, 2019, Tether Limited announced that their tokens are only 74% secured with fiat US dollars.

On January 23, 2020, the world’s largest porn site Pornhub added Tether (USDT) as a payment method. Shortly before this, PayPal suspended payments to the authors of porno-videos.

Recently, according to the project’s own statistics, the market capitalization of its assets in USDT was more than $9 billion.

Statistics

The principle of Tether operation is very simple, 1 US dollar is equal to 1 Tether coin, but in practice, it is quite difficult to make an equivalent exchange. Thus, the operation of the token depends on financial relations with banks and the state.

Why is it necessary? Indeed, the interest in the digital currency is caused by a change in value with the possibility of generating large incomes. Tether has a fixed price and there’s no need to expect a drop or a rise in value. It is known that the purchasing power of any real currency is reduced due to rising inflation, and a contribution to the Tether can be considered a deposit at 0%.

As of 31.05.2020 Coin Market Cap the following statistics on the price of USDT: showed

Current price of Tether: $1,00 USD
Market Cap: $8 802 223 608 USD
Volume (24h): $35 948 173 147 USD
Circulation Supply: 8 798 069 379 USDT
Total Supply: 9 079 177 442 USDT

Through the last 180 days, the peak worth of the coin was $1.012, and the minimum was $0.9972.

All-Time High Price for USDT was stated on May 27, 2017 — $1,21.

Technical analysis

Website reflects technical analysis on Tether based on the most popular technical indicators: Moving Averages, Oscillators, and Pivots. If we consider technical analysis during the last month, it is seen that out of six Oscillators, 4 are Neutral, 1 is indicating Buy action, and 1 is stating Sell action. Most of the Moving Averages are stating Strong Buy action. All in all, the Summary states that with USDT/USD pair the dominant action is Buy. Trading view

Pivots for USDT/USD are indicated in the table below. However, if to switch to technical analysis for the last week, the picture changes dramatically. Out of 11 Oscillators, 7 are Neutral, 1 is indicating Buy action, while 3 are stating Sell action. Most of the Moving Averages are stating Sell action. Thus, the Summary states that with USDT/USD pair the dominant action is Sell.

The Summary for the last day (as of June 3 rd ) also states Sell action.

Price prediction

According to Wallet Investor, USDT is a bad long-term (1-year) investment. They note that the current investment in Tether may be devalued in the future.

At the same time, Digitalcoin that Tether might rise up to $5.12 US in 2026.

Coinpredictor that Tether will be lessening in value in the nearest future. displays

Plans

On July 17, 2019, Tether the release of its stablecoin USDT on the Algorand 2.0 blockchain. The changes were implemented on February 10, 2020. The Algorand protocol can increase transaction processing speed and lower fees. It is expected that the transaction processing time will be no more than four seconds, and the commission will not exceed 1%. These, according to Tether, are attractive conditions for making small payments. Tether also plans to use the technology of standardized assets (Algorand Standard Asset, ASA), which is supported in the Algorand 2.0 blockchain. This technology allows tokenizing and issuing assets of “any type” on the Algorand platform.

To further pioneer collaboration and interoperability within the growing digital asset space, we are proud to announce the upcoming deployment of Tether on the @Algorand platform. https://t.co/fPKVqcL3JF

- Tether (@Tether_to) July 17, 2019

It is not yet known of all cryptocurrency plans in the future, but Tether plans to add more supported fiat currencies, namely JPY and GBP. Moreover, Tether integrates with various blockchains, and the coin is already available on Ethereum, EOS, Litecoin, Tron, Algorand. Perhaps over time, this integration will spread to more blockchains.

Experts say

Craig Sellars, the founder of the largest stablecoin Tether (USDT), on Twitter that in 2015 he was trying to sell the idea of stablecoin to a large American financial conglomerate Goldman Sachs.

Seller also determined stablecoin as a “ready-made central bank.” However, the financial institution was not able to understand why someone might need a dollar on the blockchain.

Hey Goldman Sachs, 2014 just called and asked for their talking points back.

Bitcoin was declared a commodity by the CFTC in 2015 in the Coinflip order…so yea it’s an asset whose price is set by supply and demand. Just like gold. Just like oil. It’s a commodity.

- Cameron Winklevoss (@winklevoss) May 27, 2020

Goldman Sachs was definitely wrong. Tether (USDT) among stablecoins, its market share exceeds 85%. The second most popular “stable coin” — USDC — occupies only 7.2% of the market share. Recently, crypto-researcher Wilson Whithiam that currently about 90% of the real cryptocurrency trading volume is aimed at Bitcoin, Ethereum, and the Tether.

The expert that demand for stablecoins shows no signs of slowing. emphasized

Crypto trading volume in 2020 has been all about BTC, USDT, & ETH

These three now represent ~90% of real vol within the top 10 compared to 75% just 1 year ago

1/ pic.twitter.com/YCMH0XL2xs

- Wilson Withiam (@WilsonWithiam) May 13, 2020

Meanwhile, trader and analyst Peter Brandt in his Twitter account that users who store funds in the Tether stablecoin are fools. According to him, holding capital in USDT is just as risky as holding “Nigerian Trinket”.

Tether. Now that is an interesting story. Holding tether is about as safe as holding the Nigerian Trinket. I think people are fools for holding wealth — even overnight — in tether. It is a joke when ppl condemn USD as fiat, yet hold tether.

- Peter Brandt (@PeterLBrandt) April 29, 2020

Disclaimer

Obviously, cryptocurrency is a highly risked asset that may rise and drop according to external obstacles. Before investing in any cryptocurrency, we advise you to check every information possible. We tried to collect the most relevant information for your convenience, but it is only your choice and decision whether to buy Tether or not. Do not invest money you can’t afford to lose and listen to your common sense.

Originally published at https://coinjoy.io.

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