What Is Tether?

Tether (CRYPTO:USDT) is a stablecoin pegged to the U.S. dollar. That means 1 USDT is designed to have a value of $1, and it normally does, although there have been price fluctuations in the past.

Stablecoins are useful for people who want to hold a digital currency that will maintain a consistent value and is backed by an asset. Tether is extremely popular for this, but it's also arguably the most controversial stablecoin.

Tether has a bigger market cap than any other stablecoin. More importantly, it has a much higher daily trading volume. In fact, Tether routinely has the highest 24-hour trading volume of all cryptocurrencies, so it plays a huge role in the digital token ecosystem.