Tiether (USDT) performance assessment in volatile market
The world of cryptocurrencies has recently experienced wild drive, prices vary quickly and unpredictably. Among the various cryptocurrencies, Bitcoin (BTC), Ethereum (ETH) and others have seen significant price fluctuations, so their performance assessment is necessary during high volatility.
One cryptocurrency that stands out, among other things, is Tether Limited (USDT). One of the most common funds on the market, USDT has achieved a massive following, and over 70% of all Bitcoin ownership is USDT. In this article, we assess Tether (USDT) performance during high volatility.
Background and Market History
Tether Limited is a subsidiary of Bitfinex, Singapore’s Crying Currency Trade. The company was founded in 2014 as a StableCoin project aimed at providing reliable value in stock for Bitcoin. The USDT was launched in September 2014, originally tied to US dollar value.
Since its inception, USDT has grown significantly and has become one of the biggest cryptocurrency with market value. It is widely used as a substitute for Fiat and is traded worldwide on many online markets.
performance during volatile market
During high volatility, such as market recessions or speculative intense, tether (USDT) is usually less volatile than Bitcoin (BTC). This is due to a number of factors:
- Stability
: USDT is tied to the US dollar, which makes it more stable property compared to cryptocurrencies that are not supported by fiat currency.
- Liquidity : Tether’s liquidity is much higher than other cryptocurrencies, allowing for a reduction in trade and market fluctuations.
- Market Demand : The popularity of merchants and investors can create a self -reinforcing effect as more participants try to buy and sell USDT in an attempt to benefit from the price.
Performance Analysis
To evaluate Tether’s performance during high volatility, we analyze its historical data over the last 12 months. Here are some of the key statistics:
* Price range : The USDT price range has remained relatively stable, with the highest value of $ 7.45 on December 21, 2020 and low at $ 4.44 on January 10, 2021.
* Volatosity Index (VIX)
: VIX, widely used market volatility measure, reached the highest level in February 2021, with an index ear 80. This corresponds to the significant growth of the USDT price range.
* Market value : Tether’s market value has steadily increased over the last year, from $ 30 billion to 10 January 2020, over $ 150 billion December 31, 2021.
Comparison with other cryptocurrency
In order to have a context in Tether’s performance, we compared it to other cryptocurrencies that have shown a significant price volatility:
* Bitcoin (BTC) : Bitcoin has experienced extreme price variation during high volatility, with a peak of $ 69,000 in November 2019 and with its low achievement of $ 3,200 on January 10, 2021.
* Ethereum (ETH) : The price range of Ethereum has been relatively stable compared to the battle, but it has experienced significant fluctuations over the last year.
conclusion
In summary, Tether (USDT) has shown stability and endurance during high volatility. Although its performance is not necessarily as great as some other cryptocurrency currencies, its strong market value and liquidity have made it a popular choice for merchants and investors who seek to benefit from prices.
However, as with any cryptocurrency, there is a risk associated with market variations, speculation and regulatory changes that may affect its value.