If you want to know a lot about Tether like what it is and how it works without going into the depths, then this article is perfect for you.
What is Tether?
Launched in 2014, Tether is a crypto issued by Tether Limited. It is a platform designed to make the usage of fiat currencies smoother (Fiat currency is a currency that is owned and issued by the government) in a very digital manner.
Tether’s top grade platform is built on blockchain technology, leveraging the protection and transparency.
Even large companies make cryptos too. For example, Facebook said that it was going to launch its own stablecoin - Libra. Then they later changed its name. The Libra currency is now known as Diem. As of 2020, USDT remains the largest and most widely used stablecoin.
What is a stablecoin?
A stablecoin is a cryptocurrency that is designed to minimise the volatility. An example of a stablecoin is Tether. Stablecoins share a lot of similarities with currencies like bitcoin but then their value is steady and does not change a lot.
Stablecoins are very valuable assets to traders or people who are looking to buy or sell because it is a strong tool from which you can avoid the high volatility of the cryptocurrency markets. Some cryptos even go down by $200 in a day. Stablecoins are not like this and their value remains constant.
If a person purchases a stablecoin like USDT, then the trader/buyer or seller has a chance to reduce their risk of a sudden drop in the price of a crypto as mentioned above where a crypto dropped by $200.
That drop cant be considered much, as Bitcoin (from Friday 8th January 2021 to Monday 11th January 2021) dropped from 41,713 dollars to 32,559 dollars. That’s an astonishing drop of 9,154 dollars in just three days.
Top stablecoins by their market capitalisation (as of Jan 11 2021)
- Tether – Market capitalisation of $24,280,852,628
- USD coin – Market capitalisation of $4,651,574,369
- Dai – Market capitalisation of $1,335,277,788
- Binance USD – Market capitalisation of $1,093,729,431
- HUSD – Market capitalisation of $288,072,889
- TrueUSD – Market capitalisation of $275,005,755
- Paxos Standard – Market capitalisation of $244,832,429
- TerraUSD – Market capitalisation of $184,400,454
A few advantages of Tether
- A very stable currency
- Very secure network
- Most widely integrated digital currency
Circulating supply, total supply and maximum supply of Tether
The important metrics of cryptos are, excluding market cap and trading volume, are circulating supply, total supply and maximum supply.
Circulating supply – The number of that particular crypto that have been circulated to the public, the total coins in public hands.
The circulating supply of Tether is currently 24,271,812,725, that is, 25,000,000,000 USDT(tethers – ₮) have been circulated and are in public hands. Tether has one of the highest circulating supply of all the cryptos. For example, bitcoin’s circulating supply is only 18,000,000 – more than a thousand times less than Tether’s.
Total supply – The total supply of that particular crypto including those that have only been mined, but not yet in public hands. The total supply of Tether is 24,781,627,122. So, more than ₮500,000,000 have been mined but the public do not have those cryptos. Examples of coins like these (have not been given to the public yet) are –
- Private sale
- Ecosystem/Bounty/Marketing/Operations/Airdrops
- Masternodes
- Team/Foundation/Treasury/Escrow
Maximum supply – The maximum supply of that crypto asset that can ever exist. It is the best approximation of the maximum supply.
For example, the maximum supply of Bitcoin is 21,000,000. So, approximately 21,000,000 BTC will ever exist.
Key points about Tether
- The current market capitalisation of Tether is $24,275,673,504
- The current circulating supply of Tether is 24,271,812,725 USDT
- Tether’s all time highest price is $1.21
- Tether’s all time lowest price is $0.8995
- The total supply of Tether is 24,781,627,122 USDT
Disclaimer: Digital Wallets News does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
