Stablecoin Tether returns to dollar parity

Tether, the world’s largest stablecoin by market capitalisation, has returned to parity with the US dollar.

Stablecoins are a type of cryptocurrency designed to remain the same value as another asset, in Tether’s case the US dollar.

The news comes after Tether experienced severe disruption last week, which led its value to drop to 95 cents.

Other stablecoins have experienced fluctuations in value in recent weeks, as crypto prices have fallen more generally.

Tether rival TerraUSD, fell to $0.05 on May 13.

Tether, unlike TerraUSD which relies on a mixture of code and other cryptocurrencies to stabilize its value, relies on cash and short-term debt as collateral.

Tether accounts for around 87 per cent of the total $169.5 billion stablecoin market capitalisation, according to data from CoinMarketCap, ahead of USD Coin and Binance USD.

Despite recent volatility, the global cryptocurrency market is projected to reach a value of $4.9 billion by 2030, according to a report by Allied Market Research.

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