Tether might be the underdog in the cryptocurrency sphere. Currently, its market cap is just behind XRPUSD. With an increase in USDT prices, it would surpass the total market cap of Ripple.
In terms of volumes traded, Tether is the clear winner. Today’s traded contracts on USDT have already crossed 2.482 million.
How does Tether fare against Ripple and Ethereum
Tether has been much less volatile than Ripple so far in the year. Being less volatile, USDT enjoyed a lower downside risk.
As compared to Ethereum, the traded volumes have always been at a superior advantage for USDT. It ensured sufficient liquidity at most times for Tether.
Technical analysis of Tether
The day’s range for Tether is $1.0003 — $1.0012. If we look at the USDTUSD fifteen-minute chart, we can see that Tether is currently trading towards the lower band of the Bollinger bands.
The 20-period Exponential Moving Average is acting as a crucial resistance.
Check USDTUSD Chart on tradingview.
With most other cryptocurrencies rising, why is the USDTUSD falling
The other top cryptos replicate the BTCUSD movements. Bitcoin is usually quite volatile. And since the others replicate Bitcoin, their declines are much more profound when BTC falls.
Tether investors have the luxury to enter into positions at decent price points without having to be burdened with BTCUSD prices.
The most critical and unique feather to Tether’s cap is the spectacular increase in its valuation post-March 12. It was on that day this year when Bitcoin suffered one of its worst declines. Tether, however, didn’t suffer the same fate. That is when investors flocked to this fiat-pegged currency.
Tether is shielded from the rising volatility and overpriced and hyped-up cryptocurrencies. It is this fact that makes Tether an excellent investment opportunity.