It is rather uncommon to see virtually all top crypto markets go in the green at the same time. Bitcoin is the only exception in the top 10, which is a bit worrisome. Unsurprisingly, Tether’s value is also getting battered again, as this stablecoin has been unable to maintain its peg to the US Dollar for quite some time now.
Tether’s USDT can’t Catch a Break
The past few weeks have not been too positive for Tether and its native USDT stablecoin. That is quite problematic, as this currency is designed to maintain a value of $1 at all times. That is clearly not happening, despite the company actively reducing the circulating supply of USDT about two weeks ago. This asset does not receive much confidence from traders at this time.
In the past 24 hours, the USDT value has dropped to $0.95 again. It is the second time in under a month that happens. Unsurprisingly, this creates some upward momentum for all top cryptocurrencies, with the exception of Bitcoin. Right now, USDT deals with a 4.8% net loss in USD value, as well as a 4.7% loss over Bitcoin.
No one will be shocked to learn people are somewhat gloating over USDT’s demise once again. If a stablecoin cannot sustain its flat value at all times, it should not even be traded on the market. Tether will, once again, have a lot of explaining to do in this regard. It is unclear why these dips keep happening time and time again.
— Daniel Trojan (@dtcz) November 4, 2018
Unfortunately, it seems unlikely this recent dip will be recovered anytime soon. Considering how there is no real interest in USDT as of right now, and it is possible the value will continue to drop for a few more hours. That would push traders to deal with cryptocurrencies directly which might give all markets a healthy boost in the process.
#USDT crashing again.
— tommy (@txmmyde) November 4, 2018
One side effect of this USDT trend is how a lot of money is pouring into the cryptocurrencies already Although Bitcoin remains in the red at this time, all other top currencies are noting some solid gains. Whether or not this is due to the second USDT fiasco in a month, remains unclear at this time.
— 100eyes (@100eyesCrypto) November 4, 2018
The demise of Tether’s USDT shows why so many new stablecoins have come to market in the past few months. It is evident there is a demand for such assets, especially if they succeed in maintaining a peg to the US Dollar at all times. For USDT, it seems another rough week is ahead. That is a positive development for the cryptocurrency industry.
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