Why Tether USDTIs the stablecoin pegged to the US dollar becoming so popular? Perhaps in part due to various falls in cryptocurrency prices, as well as predictions of an impending global economic crisis.
Why the volumes of USDT and also of XAUT, the stable currency linked to the price of gold, increase so much?
Recently Paolo Ardoino, CTO of Bitfinex and Tether spoke about it.
"Merchants and users generally prefer USDT to the dollar because Tether USDT can move much faster (in a few seconds) on the blockchain, while dollars can only be moved by bank transfer. Owning Tether USDT is the best way to have the stability of the dollar, while enjoying the advantage of being able to move funds in real time and capitalize on favorable market conditions. Furthermore, Tether USDT is a cryptocurrency that allows users to maintain full control over their assets. ”
According to research published by Messari, while bitcoin's market capitalization (BTC) has dropped 37% since mid-February, Tether USDT has grown 38%, or nearly $ 2 billion.
During the same period, XAUT grew approximately 40%, although its market capitalization is still less than 10% compared to Tether's USDT.
According to Ardoino, the reason for this difference is currently reflected in the fact that:
“USDT is more stable than XAUT. Both are good options, but they have different uses. Furthermore, USDT can be used to purchase goods and services, while XAUT is a newborn and therefore its adoption is lower at this time. ”
Generally speaking, gold, in this period of economic uncertainty, is certainly gaining new supporters, with a 6% rise in its price in recent days, and its correlation with the price of bitcoin is also on the rise.