Tether (USDT) Dominance shows how much percent of the money is on USDT. There is 2 cause of the increase of USDT dominance.
The first is that investors put cash on the market from the outside, which is due to the unfavorable weather in the market. And the second is again, as the market falls, investors withdraw their funds from cryptocurrency investments and put them to USDT. In both of them, a decrease in cryptocurrencies and an increase in USDT holders are observed.
Let me show you some examples;
Candlestick chart: Tether DominanceOrange line chart: BTC/USD chart
As can be seen, it has an inverse correlation. As Bitcoin rises, Tether dominance has fallen, while Bitcoin has fallen, Tether dominance has entered an upward trend.
If you want, let’s compare it with TOTAL and TOTAL 2 (that is, the total market value of the highest 125 altcoins, excluding Bitcoin).
Candlestick chart: Tether DominanceOrange line chart: TOTAL 2
Candlestick chart: Tether DominanceOrange line chart: TOTAL
As you can see in these graphs, the inverse correlation has been preserved.
Tether was launched in 2015 by the company Tether Limited. The company claims to have 1 American Dollar (USD) in its vault for each Tether (USDT) cryptocurrency. The fact that the USDT value is fixed to the US Dollar provides great convenience for users.
Tether provides benefits for crypto investors as it offers a way to avoid excessive volatility of other cryptocurrencies.
Tether offers investors a way to avoid the excessive volatility of other cryptocurrencies. A trader can reduce the risk of being exposed to a sudden drop in the prices of cryptocurrencies by moving his funds to USDT.