Tether won’t be going to the moon.
That is as obvious as it gets.
Stablecoins exploding is quite the same as Elon Musk going broke; impossible.
If Stablecoins start going to the moon, they’d need to leave the ‘stable’ prefix on earth pre-launch.
The question, however, should be ‘will Tether crash?’
Can Tether’s trust collateral sustain it through the coming years?
What exactly is the fate of USDT in the coming years in the face of:
- Cryptocurrencies’ volatility?
- Booming Government cryptocurrency regulations?
- And increasing uncertainties of stable coins legitimacy and use cases?
As you can probably guess, Tether price forecast will be more fundamental than technical analysis.
In this article, you’d be learning:
Tether news fundamental analysis
Tether price prediction (2022, 2023, 2024, and 2025)
Read on to learn more about when to invest and how much your ideal Tether investment will be.
USDT Price Statistics
USDT Price prediction
These chart examples prove further using the little technical arsenals possible that against all odds, USDT has been playing stable since its launch days.
And so, the same is expected for the coming years. However, minor fluctuations can happen just like they did with USDT for the past years.
The highest percentage increase and decrease USDT had this year is 10% and 1.3%, respectively. And USDT is currently trading around 1.001 and 1.002, which might be the closing price for 2021, considering the few weeks left for the year to round off.
If USDT repeats its percentage change in price for 2022, it should trade all the way to 1.02 and 1.025, and if it decides to sell below, 0.90/0.95 might be visited.
But fundamentally, cryptocurrency adoption is gaining grounds, which is a pointer to the future validity of USDT’s use-case, therefore, reassuring its stability as a coin.
In conclusion, about 96% of Tether’s minted USDT are purchased directly by Market movers such as Alameda and Cumberland. Such activities are unlikely to have any direct effect on USDT price.
On the other hand, these market movers have Tokens of their own into which they pump some of their profits made off of USDT.
Such actions are likely to have significant to minor effects on the tokens’ prices, indirectly affecting their ripple towards the USDT.
If Tether fails to deliver on its promised external audit, the fate of USDT in the coming years might be shaky; people can dump USDT in a flash and crash USDT’s price.
But, Provided Tether still holds sway on people’s trust, USDT isn’t going anywhere for a couple of years.
Tether’s Price History
A company issued USDT in Hong Kong named Tether, and one of its functions in the cryptocurrency space is to mirror the price of the U.S. Dollar.
USDT primarily launched in July 2014 as Realcoin.
According to Real Coins’ CEO, Reeve Collins, he made this statement in November 2014; “We’re not an altcoin, we’re not our blockchain.
We’re a service, a token that represents dollars. Our specialty at Tether is currencies on the blockchain, so Tether means a digital tie to a real-world asset and the digital assets that we’re focused on our currencies.”
USDT Price History; 2019 to 2021
|Date (Month & Year)||Price||Open||High||Low||Vol.|
Tether Price Analysis
That USDT is a stable coin means its price does not significantly fluctuate. As shown in the chart below, USDT launched at $1.00, since then has been playing around the range of 1.00 and 1.02.
There is not much difference in the cost compared to other cryptocurrencies, with more than 20,000% increases since launch.
Having understood USDT as a stable coin, some people then ask if USDT can potentially lose value or crash. They want to know what factors determine the appreciation and depreciation of USDT.
It will be an excellent start talking about the market capitalization of USDT. Every cryptocurrency has its market capitalization.
This detail is essential because investors use it to fully understand the nature of a particular coin and compare value across cryptocurrencies to help them make more informed investment decisions.
As a critical statistic, it can indicate the growth potential and whether it is safe to buy.
You can see that the focus of the factors is on the investors. Investors are the primary determinant of the fate of a coin at any time.
If investors put their faith in a coin, they will invest heavily in it, increasing market capitalization. Since the cryptocurrency’s total supply is the same, there will be inflows of demand in the market, causing a price increase.
An example is what happened to bitcoin around May 2021. Elon Musk initially embraced bitcoin as a valid source of investment when he announced he was buying more than $1 billion of it for his automaker’s balance sheet.
Other investors took turns as several payments firms announced they were upgrading their capabilities for more crypto actions, and major Wall Street banks began working on crypto trading teams for their clients.
Not long after, he later came forward to announce that Tesla would no longer accept bitcoin as payment due to environmental reasons.
This event led to a dramatic pullback in bitcoin and other cryptocurrencies. Bitcoin, for example, fell to more than three-month lows on a single day, dropping to about $30,000 at one point.
Ether, the leading coin for the Ethereum blockchain network, was also down sharply and broke below $2,000 at one point, a more than 40% drop in less than 24 hours.
Therefore, there is no doubt that investors’ sentiment has a remarkable impact on a cryptocurrency’s price, including stable coins too. USDT itself experienced something similar during controversies regarding the validity of Tether’s claims about their USD reserves.
Many have raised concerns that an independent third party has never fully audited Tether’s reserves. Over the years, it has been disrupting USDT’s price, which went down as low as $0.88 at one point in its history.
But the effect might not be significant with a stable coin like USDT due to Tether’s claims that every single USDT is backed by one U.S. dollar and that the amount of tokens is limited by the company’s actual cash reserves.
According to Tether, over 14.4 billion USDT tokens are in circulation, backed by $14.6 billion in assets as of September 2020.
The stability characteristics of USDT have made it difficult to analyze it due to its very low volatility and its technically stable price. However, it will be nice to make a bit technical comparison of USDT paired with a volatile coin when paired with fiat to establish the stability feature of USDT further.
The above charts show USDT paired with fiat and a volatile coin. The USDTUSD line chart on the left-hand side shows dormancy in price movement with no significant increase or decrease in price over the months.
Because the USD paired with USDT is fiat and isn’t volatile, it couldn’t make any substantial movement against USDT, as they are both at equilibrium.
But that wasn’t the case for the second chart depicting USDT paired with a known volatile coin; ETH.
A notable fluctuation in price is seen at play here. Since USDT is a stable kind, it, therefore, didn’t struggle with ETH for volatility but rather gave way for ETH to move freely in whatever form it would.
That isn’t the case with the chart of ETH/BTC as they are both volatile coins, and because of that, there was an evident struggle in the price movement, as analysts call it, liquidity.
What you don’t know about Tether
Many financial analysts and crypto enthusiasts have unconsciously not been paying attention to Tether (USDT).
A surprising number of crypto traders can’t explain the USDT operating mechanism and use cases.
To this day, some folks still think of Tether as a dignified fiat and not a cryptocurrency.
I recently read one article that referred to USDT as a digital U.S. dollar. What an amusing theory.
So, what then is Tether?
What is Tether?
For a start, Tether is a Cryptocurrency pegged to the U.S. dollars as trust collateral to maintain stability and digitally represent USD value.
Tether claims every USDT Token is backed by real USD in secured vaults and banks.
A case Against Tether’s Decentralization
Some experts argue Tether and some Stablecoins aren’t truly decentralized as they derive their value from tangible physical assets secured by centralized authorities.
Tether’s use cases
Tether (USDT) is a cryptocurrency, not a fiat. But compared to other coins, it is a stable currency.
What do I mean by a stable currency?
Cryptocurrencies are generally known for their volatility.
USDT as a stable coin is a refuge for crypto investors and traders. They can safely convert their bitcoins, altcoins such as ETH, ADA, and shitcoins during a period of high volatility in the market.
But USDT’s primary goal is to keep cryptocurrency valuations steady.
Tether designed USDT as a stable wealth storage alternative to the uncertainty in other cryptocurrencies’ investments.
As of Dec 2021, eight blockchains, EOS, Liquid Network, Tron Network, and Omni (among others), currently support Tether. And exchange platforms like Binance, Bitfinex, Coinbase, etc.
- How can I Buy Tether?
You can buy Tether from
– Any of its supported exchanges like Binance and Coinbase
– Directly from its parent company
– From a friend or any small USDT merchants
- How does Tether work?
Tether tokens are built on various blockchains and are pegged at a 1:1 to real-life fiat currencies. That is, 1 USDT token is equivalent to 1 USD. Every Tether minted is backed by a USD reserve. And each Tether returned to the parent company for fiat remittances is destroyed before its fiat equivalent is released. Tether Tokens are also compatible with smart contract protocols of the ETH blockchain and other USDT compatible smart contract supportive blockchains.
- Who can use Tether?
Tether allows people, crypto traders, and businesses a decentralized way of using fiat currency USD on blockchains without going through the hefty conversions fee and regulations associated with fiat conversions.