Tether or USDT has been riding higher by harnessing investor’s sentiment in the crypto-trading by significantly outsmarting the BTC-USDT ratio. Tether has been trading at a premium in comparison to the US$, therefore, because of the stability, investors have been preferring this token over other stable coins. The market cap of USDT has been significantly rising from US$4.1 billion to US$15.7 billion at the time of writing. Keeping such an upward trend in mind, it is largely expected that USDT will replace ETH in market capitalization and emerge as the next most preferred stable coin by market cap at present.
Most of the market experts have been suggestive of the change that such developments have clearly shown that the market has been eager to adopt USDT as a stable token for trade. The main concern primarily goes to loss of trust of the Chinese investors on the Yuan and their increased investment reservation coming with respect to investing in BTC. On the contrary, a market that has the highest Bitcoin miner shifting its stance to Tether has widened the scope of the stable token. People’s sentiment in China depicts that they have started preferring Tether to be adopted as a go-fiat currency which is a good sign for the investment and better returns will likely happen when it comes to investing in Tether to BTC or Tether to ETH.
Most of the economists believe that the Chinese government ban that was enforced in 2017 for trading in CNY/BTC has significantly impacted the scope for investment in Chinese Yuan (CNY) offering considerable leverage to USDT. It was seen that when the ban was not enforced, CNY/BTC pair dominated the market, but after the imposition of the ban, the traders looked for better opportunities to regroup themselves and look for other alternatives that could give them better returns. At such times, the Tether emerged as a prime choice for them and considering the high demand for cryptos in China, Tether has dominated the market ever since. The future roads look amicable for this stable token as the market cap has risen by 108% and the US Treasury has gone reckless perceiving the demand to mint new tokens to fulfil the rising market expectations regarding stable tokens.