Tether Volume Skyrockets And Surpasses Bitcoin; What Does It Mean?
Tether (USDT) volumes have surpassed those of Bitcoin (BTC) on April 5, 2019. This comes after Bitcoin crossed the $5,000 price barrier after four long months. However, there are many individuals that are asking whether these volumes are real or just faked.
Tether Volumes Surpass Those Of Bitcoin
A few days ago, the total trading volume has reached new highs, close to $89 billion on April 3. However, there were some reports regarding how legitimate this volume is, considering that the company Bitwise released a report informing that 95% of the exchanges listed on CoinMarketCap have fake volumes.
Trading volume is related to the value of the transactions that are made in a specific market at a given time. If there is a high volume in a specific asset, this means that there is high interest in it. Additionally, if the market move in a specific direction and there is volume behind this drastic move, that is an indicator that measures the relative worth of a specific market move.
Thus, as the crypto market moved up after several months in a bear trend with the largest volume ever registered in history, there are several enthusiasts that are very excited about it. But as mentioned before, Bitwise Asset management, showed that there are just 10 exchanges out of 81 that have genuine trading volume.
Tether is the most popular stablecoin in the market. The virtual currency is pegged to the US dollar on a 1:1 ratio. There have been several controversies related to Tether, including fake volume.
The digital currency has also failed in addressing transparency concerns related to the funds used to back the USDTs launched to the market. Is there 1 USD per each USDT that Tether issued? This is a question that the company answers but that users and enthusiasts in the space do not fully believe.
Back in 2018, Tether lost its peg against the US dollar and the digital asset fell down to 0.9 or even 0.8. However, it swiftly moved up again. During this movement, the price of Bitcoin reached $7,000 since most of Tether users moved their funds towards BTC.
At the time of writing this article, Tether registered a trading volume of $18.27 billion followed by Bitcoin with a trading volume of $17.89 billion. Ethereum (ETH) and Litecoin (LTC) are the following virtual currencies in terms of trading volume with $7.98 billion and $4.1 billion handled respectively.