Tether (USDT) has regained parity with the U.S. Dollar. Currently the dollar token is valued exactly one dollar. This might seem logical, but the stablecoin lost parity mid-October when it sold on exchanges for as little as 85 cents. It’s not exactly known how Tether regained its value, but it did. Tether did lose some of its reputation and volume dominance on the market.
Even though Tether regained its value, the coin lost a lot of volume. The market cap is now at 1.79 billion dollars. This is over a billion less compared with the 2.8 billion that was in circulation last month.
Bitfinex has been sending over 930 million dollars worth of Tether to a wallet controlled by Tether Ltd. This wallet is known as the ‘treasury’ and coins in that wallet are considered to have been removed from circulation. Last week Tether destroyed another 500 million USDT.
Currently Bitfinex has seen its Tether supply increasing, while all the wallets from other major exchanges like Binance, Kraken and Bittrex are declining. Likely these are the coins that have been moved to the treasury wallet.
With TrueUSD (TUSD), USD Coin (USDC), the Gemini Dollar (GUSD) and Paxos Standard Token (PAX) there are many alternatives for Tether. After the debacle with USDT many exchanges decided to embrace the use of multiple stablecoins in an effort to offer alternatives in case lightning strikes twice.
Tether is still a top 10 coin in terms of volume, and there’s no other stablecoin getting even close. TrueUSD is number 47 according to CoinMarketCap with a market cap of 175 million dollars and 26.7 million dollars daily volume. USD Coin is 58th, Paxos 62th, and the Gemini Dollar is ranked at 1707th position with a total supply of only 11 million dollars.