Stablecoins entered in the crypto market with the ambition to overcome untamed price volatility. Theoretically, these coins are more useful to pay for goods and services or money transactions overseas.
Tether is the most preferred stable coin of all. It not only manages to bring price swing low, but it also acts as arbitrage between all the major exchanges across the globe. In mainland China, the biggest crypto investor country, Tether is the most favored cryptocurrency amongst investors.
And now, Facebook is bringing a new challenge for the currency.
To expand beyond social network and move into global payments and e-commerce, Facebook is to launch a stable coin ‘Libra.’ It will be backed by a reserve of real-world assets such as bank deposits and short term government securities. Which mean it would be more stable than any other cryptocurrency.
Current Statistics Of Tether Coin:
Currently, on June 21, 2019, at UTC 07:59:25, Tether is trading at the price of USD 1.00. Price dropped by 0.22% in the last 24 hours. Yesterday prices closed at USD 1.00 after hitting the lowest price of this week USD 0.995611. Bitcoin price also lowered further by 5.65% to 0.00010241 BTC.
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The current market capitalization for the coin is $3,556,296,804 USD with the circulating supply of 3,547,705,309 USDT for trading. In the last 24 hours, Tether traded at the volume of USD 19,729,335,625. Current return on investment is of 0.24%.
Tether Price Prediction:
Since last few months, USDT is facing various challenges. Whether it’s a question about its solvency reserves or manipulation of Bitcoin price, be it failing to produce the authentic proofs and conducting legitimate audits, team Tether has disappointed its investors and now struggling to regain their faith.
As a result, slight movements in the market cause huge price variation for this currency.
The news of Facebook Inc is to launch its stable coin seem to have taken a toll on Tether price. This new challenge, along with already going on allegations and disputes, caused Tethers price drop.
It is the fact that Tether has overcome every challenge in the past. With the total supply of worth $3.5 billion in the market, USDT is the ninth highest cryptocurrency, in the market. Hence it will be interesting to see how team Tether will respond to this new challenge.
Conclusion:
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Facebook has just announced its new stable coin. It will be hard to predict anything at the moment, how this will affect Tether in the future.
Nonetheless, Tether is still the most popular altcoin in the crypto market. Invest in the coin to stabilize the high volatility of the portfolio. It should allow you to trade quicker and to get back in the market when things go wrong.
