USDT is one of the most stable cryptocurrencies

Representatives of the analytical portal CryptoQuant have collected statistics regarding fluctuations in the cryptocurrency market, and in particular the blockchain data of one of the most popular stablecoins Tether (USDT). They decided to do this due to criticism from The Wall Street Journal and Bloomberg, calling into question the stability of the USDT.

As a result, experts from CryptoQuant came to the conclusion that the price is still at the level of $1, and the volatility of the stablecoin has decreased. Growing buyback volume due to recent events and the difficult market situation, it would seem, should lead to lower prices and increased volatility, but USDT shows enviable resilience.

According to experts, USDT in the Ethereum network became less volatile with the growth of capitalization, and rare events like a bull run in 2018-2019 made Tether fluctuate in the range from $0.95 to $1.05. Other factors could also have contributed to this, such as the spread of misinformation about the USDT.

In recent years, a small drawdown to the level of $0.996 was seen during the collapse of Terra (LUNA), which issued the UST stablecoin. In early November, as a result of the fall of the American cryptocurrency exchange FTX, USDT showed a backlash and rose to $1,006.

The redeemed offer expresses the power of USDT to exchange cryptocurrencies for fiat. Investors, if they want to get out of a position, start selling crypto for Tether or other stablecoins, after which they send cryptocurrency dollars to their credit cards.

The larger the total market capitalization, the more popular stablecoins are, and therefore the demand for them increases, but in this case, USDT still has low volatility. According to the analysis of on-chain data by experts from CryptoQuant, it was found that Tether remained pegged to $1 even during moments of strong market turmoil.

In addition, analysts have noticed that USDT can process large volumes of transactions without experiencing pressure on its market price, which can not be shown by every token in the vastness of the cryptocurrency industry.

It is noteworthy that on December 8, a record number of transactions between 248,027 users was recorded. Ethereum, in turn, lost its performance and fell to the lows that were last recorded in May last year.

CryptoQuant also noticed that USDT is in greater demand on the TRON network than on Ethereum. The total market supply on TRON is over $37,000,000,000 while on the Ethereum blockchain it is $32,000,000,000. The reasons for this are most likely the low commission for transactions.

USDT on TRON showed faster growth than on Ethereum. The matter did not change in 2022 when ETH switched to the Proof-Of-Stake principle, where transactions became lower.

From other interesting data, experts provided the story of the burning of Tether coins. During the fall of Terra (LUNA), $4,000,000,000 USDT was destroyed on the TRON network, and $3,000,000,000 on ETH. It is noteworthy that during the fall of FTX, not a single stablecoin was burned.

Recall that Tether announced in December that it would stop issuing loans in USDT next year. The reason for this was the media statements about the insufficient security of loans issued by Tether.