Tether Price Chart

Tether (USDT) is the world’s largest stablecoin by market capitalization. Being a stablecoin means that its value is pegged to the US Dollar. In other words, $1 = 1 USDT, with the stablecoin always aiming to trade around that range.

Tether, like most stablecoins that have come after it, serves the primary purpose of providing a channel for investors to move US dollars in and out of the cryptocurrency market. Additionally, it serves as a means for investors to hedge against the high-volatile nature of the cryptocurrency market.

Brief History of Tether (USDT)

The Tether stablecoin was originally launched as RealCoin in October 2014. However, one month later, the project company rebranded as Tether, with the objective of providing a means for investors to hold US dollars in the cryptocurrency market.

Tether originally launched on Omni, a Bitcoin-based sidechain. However, as the cryptocurrency industry evolved, Tether launched on other networks and is currently available on Ethereum, Solana, Polygon, Avalanche, and BNB Chain, amongst many others. Notably, Tether has phased out USDT on Omni.

Tether (the issuing company) has often come under criticism for providing a comprehensive overview of the assets that back up its stablecoin. Ideally, the company is expected to hold US dollars and other assets, such as short-term treasuries and bonds, to back the stablecoin. Such assets will provide a means for investors to recoup their money if the USDT stablecoin loses its value.

However, Tether maintains that its stablecoin remains fully backed. To its credit, USDT has stood the test of time and has become the most widely used stablecoins worth billions of dollars in market value. It ranks within the top cryptocurrency by market capitalization, remaining the stablecoin of choice for many crypto users.