Tether (USDT) Q1 Trading Volume Drops To $5.3 Trillion In Quarterly Low
With the chaotic phase the crypto market is going through, Tether (USDT) trading volume plunged lower in Q1 2022 compared to the same quarter last year. The total Tether transaction for the first quarter of 2022 is 26,454.
While the bearish trend has caused many investors to turn to stablecoins, investor interest in USDT remains somewhat under control.
Tether is referred to as a stable crypto because, unlike Bitcoin, Tether is pegged to the US dollar, meaning it maintains a consistent value over time. It is a go-to or preferred altcoin, especially for investors with a low risk appetite.
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What is tether?
Tether is a stablecoin that is much more consistent or stable compared to other cryptocurrencies like the two popular BTC and ETH as it is backed by fiat money. This means that Tether has real US dollars that serve as collateral. It has basically the same value as the USD.
Stablecoins act as a middle ground, providing liquidity in an extremely risky and volatile environment that allows crypto to be viewed as a store of value and less than a risky venture.
USDT total market cap at $82.28 billion on the weekend chart | Source: TradingView.com
The most popular stablecoins are Tether, USD Coin and Gemini Dollar, which all share the same characteristics, backed by US dollars. On the other hand, other stablecoins are backed by silver, gold and other fiat currencies such as the yen and the euro.
USDT trading volume plummets
Tether’s trading volume fell to $5.3 trillion in the first quarter. Compared to the trading volume from January to March 2021 of 2021, there was a marked reduction in trading volume by as much as 46% or about $9.9 trillion.
Overall, crypto trading volume has plummeted, which also appears to have caused the dip in Tether’s trading volume in the first quarter.
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Price action analysis
To analyze the impact of Tether trades falling on Tether trading volume, it is important to compare USDT trading volume in the first quarter of 2021 to 2022.
The January 2021 USDT trading volume is $3.4 trillion, which is up from the trading volume in the first quarter of this year, which was $1.8 trillion.
Meanwhile, the March 2021 USDT trading volume stands at $2.7 trillion, which is a bit higher compared to the 2022 trading volume in the same month at 1.9 trillion.
The January 1, 2022 trading price for USDT is $1 and closed the first quarter at $1. Tether is definitely as stable as it gets; literally.
Featured image from Shutterstock, chart from TradingView.com