Evaluate Tether’s performance (USDT) in a volatile market
The world of cryptocurrencies has been experiencing a wild trip with milk, and prices fluctuate quickly and unpredictably. Among the various cryptocurrencies, Bitcoin (BTC), Ethereum (ETH) and others have seen significant price changes, which makes it essential to evaluate their high volatility performance times.
A cryptocurrency that stands out among others is Tether Limited (USDT). As one of the most negotiated assets in the market, the USDT has gained mass monitoring, with approximately 70% or all Bitcoin holdings such as USDT. In this article, we will evaluate the performance of the duration of Tether (USDT) of high volatility.
Background and market history
Tether Limited is a subsidiary or bitfinex, a cryptocurrency trade platform based in Singapore. The company was founded in 2014 as a Stablecoin project aimed at providing a reliable asset of the Bitcoin value store. The USDT was launched in September 2014, initially linked to the value of the US dollar.
Since its inception, the USDT has seen significant growth, becoming one of the largest cryptocurrencies for market capitalization. It is widely used as a substitute for fiduciary currency and is marketed in many online exchanges worldwide.
Performance duration Volatile markets
High volatility duration periods, such as turning market recessions or speculative fervor, tether (USDT) tend to be less volatile than Bitcoin (BTC). This can be attributed to several factors:
- Stability : USDT is linked to the US dollar, which makes it a more stable asset compared to cryptocurrencies that are not backed by a fiduciary currency.
- Liquidity : Tether’s liquidity is much greater than that of other cryptocurrencies, which allows trade and reduction of market fluctuations.
- Market demand : The popularity of the bond between merchants and investors can create a forced effect on their own shore, since more participants see buy and sell USDT in an attempt to benefit from the price.
Performance analysis
To evaluate the performance times of Tether’s high volatility, we analyze its historical data in the last 12 months. Here are some key statistics:
Price range
: The price range for USDT has a remintested repair stable, with a maximum of $ 7.45 on December 21, 2020 and a minimum of $ 4.44 on January 10, 2021.
Volatility Index (VIX) : The VIX, a widely used measure of market volatility, reached its highest level in February 2021, with an index value of 80. This corresponds to a significant increase in the USDT price range.
Market capitalization : Tether market capitalization has constantly increased during the past year, from $ 30 billion on January 10, 2020 to more than $ 150 billion on December 31, 2021.
Comparison with other cryptocurrencies
To put Tether’s performance in context, we compare it with other cryptocurrencies that have shown significant price volatility:
Bitcoin (BTC) : Bitcoin has experienced a more extreme price duration of high volatility, with its peak reaching $ 69,000 in November 2019 and is low reaching $ 3,200 on January 10, 2021.
Ethereum (ETH) : Ethereum’s price range has been relatively stable compared to bonding, but has experienced significant fluctuations on last year.
Conclusion
In conclusion, Tether (USDT) has demonstrated stability and high volatility resilience. While its performance may not be as spectacular as other cryptocurrencies, its strong capitalization and market liquidity have made it a popular option for merchants and investors that benefit from price movements.
However, as with any cryptocurrency, Tether is subject to the risk of associated with market fluctuations, speculation and regulatory changes that can affect its value.