According to Reuters, amidst a banking crisis in the US and increased regulatory scrutiny on cryptocurrency companies, investors in the crypto world are turning to tokens and coins that are considered relatively secure, with Tether, a digital stablecoin, emerging as the most secure asset.
Tether is tied to a fiat currency, such as the US dollar, and has a fixed supply of around 85 billion tokens, maintaining a 1-to-1 peg with the US dollar. Tether’s value is backed by a reserve of dollars, which has resulted in a growing trust in its peg and safety from SEC’s scrutiny.
This has led to Tether becoming the best-performing stablecoin, with the market value increasing since March. Tether is seen as a store of value and a tool for transferring funds between cryptocurrencies and is also used as collateral for derivative trades.
Furthermore, Tether is less US-focused than its competitor USDC, which has suffered losses due to exposure to a collapsed bank and regulatory pressure on fintech and crypto firms.
As a result, Tether has become the third largest token on CoinMarketCap, with a market cap of $82 billion and a share of 6.83%.