Tether’s market value increase due to BUSD’s halt

02/22/2023 05:15 • Blockchain Buzz • 139 views

It is reported that the market value of the stable currency issuer Tether (USDT) has increased by US $1.9 billion to US $70.3 billion since the news that the New York Financial Services Department ordered Paxos to stop issuing BUSD. At present, the stable currency market accounts for 52.6%, higher than the previous 51%.

Since Paxos stopped issuing BUSD, the market value of USDT has increased by US $1.9 billion, and its stable currency market share has reached 52.6%

Interpret the above information:

The market value of Tether (USDT) has experienced a significant increase of US $1.9 billion, reaching US $70.3 billion since the announcement that the New York Financial Services Department had ordered Paxos to stop issuing BUSD. This news has made Tether the leading stable currency issuer in the market, accounting for 52.6% of the total stable currency market, indicating an increase from the previous 51%.

One can interpret this news in a couple of different ways. Firstly, the halt of BUSD issuance clearly created a gap in the market that was filled by Tether, as BUSD was a direct competitor in the stable currency market. However, it is important to note that BUSD accounts for only a small fraction of the overall stable currency market. Therefore, the impact of its discontinuation should not be overstated.
The increase in USDT’s market value, on the other hand, can be explained by an increase in demand for Tether’s stablecoin, which is likely driven by the perception of relative safety and stability in comparison to other cryptocurrencies.

Additionally, Tether has proved to be a crucial tool for traders and investors who seek stable coins amid the recent market fluctuations. Since Tether has become a popular reserve currency for other cryptocurrencies, its rise indicates a high level of trust in it as a safe asset.

Overall, the news of Tether’s market value increase provides insight and sheds light on the growing importance of stable coins in the crypto market. Stable coins help to address the volatility associated with cryptocurrencies, and their issuance and market presence are quickly gaining popularity among investors. Tether’s dominance underscores the importance of trust and reliability in cryptocurrency and hints at the possibility of further expansion of stable coins into mainstream finance.

In conclusion, the halt of BUSD issuance opened up a market opportunity for Tether, leading to an increase in its market value. Furthermore, Tether’s rise is due to the growing demand for stablecoins and its proven track record of reliability and dependability in a volatile market. Hence, it is evident that Tether’s increase in market value and its position as the leading stablecoin issuer are worthy of note in the cryptocurrency landscape.

This article and pictures are from the Internet and do not represent SipPop's position. If you infringe, please contact us to delete:https://www.sippop.com/2289.htm

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.