Tether (USDT) has seen an increase of 0.7% over the last 24 hours, bringing this stablecoin up to exactly $1 (USDT/USD). Since it is closely linked to the US dollar with a one-to-one relationship, it tends to stay very near to that $1 mark.
Tether has recently weathered multiple investigations and allegations into where its backing comes from, revealing that only some of its assets are backed by U.S. dollars, many of them are backed by bonds, secured loans, precious metals, and other varied assets. All of the Tether dollars are backed by some sort of asset, but it’s not all US currency. This detailed listing of Tether’s assets has laid to rest many fears about the cryptocurrency and helped investors to feel better about all of their Tether tokens being secured and fully backed.
Once all these details came to light and the federal investigation into Tether was completed, consumer trust in Tether improved. Consumer confidence in USDT had been unstable throughout some of 2021, but Tether has since solidified its position as the number one stablecoin and one of the top overall cryptocurrency tokens.
Is Tether Worth Investing in?
Putting an investment into a stablecoin is different from doing so with a traditional cryptocurrency asset. USDT is tied to the US dollar, so its value is not likely to change very much. Even looking at it over the long term, optimistic predictions put Tether’s growth at 0.8% by 2026 as a 5-year investment. The 1-year forecast is even less promising, at about 0.3%.
Investors shouldn’t look at Tether as a way to grow their initial investment over time. That’s something other cryptocurrency coins are better at. Where Tether excels is by serving as a liquid asset that can be quickly and easily traded between other cryptocurrencies while still retaining value most of the time. Tether’s price doesn’t change too much, unless you’re looking at it on a micro level. With Tether, even the biggest ups and downs are only dealing with changes in fractions of a cent. Tether is a great place to keep liquid investments while waiting for the rest of the market to move around and become a viable investment opportunity.
Tether is certainly worth investing in for its stability, and it should continue to be one of the most used and functional cryptocurrency coins for a long time to come. Now that a lot of the issues surrounding its backing have been cleared up, Tether is well set for the future.
Read More:Since Tether (USDT) Is Trusted Again and Is Up Today, Has It Become a Good Investment? –