1. Vizaca
  2. Crypto
  3. Tether Price Prediction: Is It A Good Investment?

Tether Price Prediction: Is It A Good Investment?

Tether Price Prediction

Crypto space is packed with coins whose worth alternatively ‘shoots to the moon‘ or falls to the floor. 

And that is not just the story for unknown meme-coins with short to no benefit other than a probability they will go viral, thereby making their originators and first-comers wealthy at the cost of those who were late to the party.

Tether (USDT), which is currently the fifth-biggest cryptocurrency by market value, followed by ethereum and Shiba inu, and USD Coin (USDC), now at number 10, recorded -0.07% and +/-0.00% differences over the past seven days of trading. 

This has resulted in a week where bitcoin and several major altcoins have frequently registered new record highs.

The Tether cryptocurrency and USDC are the so-called stable coins – a sub-sector of cryptocurrencies created to be safe from volatility. Stablecoins’ value is intended to be secured against government-backed assets, for instance, precious metals such as gold. This is what makes them “stable.” 

Tether Price Prediction Is It A Good Investment

What is Tether (USDT)?

Tether’s market value of $73.8bn puts the coin firmly within the top five of cryptocurrencies. Tether claims the most significant trading volumes across the entire sector. With $118bn, its daily trading volume is double that of bitcoin’s (at $50bn).

The Tether (USDT) token is the largest and the first stablecoin, as it originated in 2014. It is pegged at a 1:1 ratio with a matching fiat currency, meaning that its issuer – Tether Holdings Ltd – distributes one Tether (USDT) stablecoin for every dollar it receives. 

The Tether cryptocurrency is designed to be 100% supported by Tether’s reserves. 

Tether Price Analysis

The Tether price has genuinely lived up to its objects in current months and years, with minimum price movements observed in a monthly low of $0.998 and a monthly high of $1.00, according to CoinMarketCap.

Tether’s price, however, encountered several major slumps and jumped since its start.

In April 2017, the coin took a hit and fell to $0.9244. Around the same time, an unknown critic, who goes by Bitfinex’ed on Twitter, took to the social media platform to challenge that tethers were not backed by anything at all for the first time and asked why, according to Bloomberg, the company had not provided audited statements. “They are literally Dave & Busters/Chuck-e-Cheese Tokens,” Bitfinex’ed said in a tweet, as Bloomberg reported.

Following April’s slump, Tether rocked up to its all-time high of $1.21 on 27 May 2017.

Another example of Tether’s momentary volatility happened following the so-called “Black Thursday sell-off” of March 2020, when bitcoin crashed to $4,000, cleaning off half of its price over two days. 

On that day, 12 March 2020, Tether’s price spiked up to $1.0536. It then slumped to $0.9742 on 18 March 2020 and encountered more volatility before trading at around $1.00.

A similar pattern was repeated – albeit lesser – during a market correction in April 2021. Analysts from cryptocurrency data provider Kaiko reasoned that Tether leads to drift from its 1:1 peg during bitcoin crashes positively rather than negatively as the traders sell their bitcoin positions to move them to Tether. 

“This phenomenon was on clear display over the weekend as bitcoin crashed from above $61,000 to below $54,000 in a matter of hours,”

they wrote in a newsletter on 19 April 2021.

“During a crash, traders will race to sell their bitcoin in exchange for Tether, which is similar to the US dollar in that it is recognized as a temporary safe haven amid extreme price volatility. 

“A sudden increase in buying pressure for Tether often has the effect of causing positive drift from the stablecoin’s 1:1 peg. Over the weekend, the sudden bitcoin sell-off caused Tether to spike above $1.004, its highest USD price since last March’s sell-off.”

Tether (USDT/USD) Price Prediction

Tether coin is created to be worth $1 at all times, and as such – if it continues up to its goals – Tether’s value should remain at $1. According to Trading Beasts’ Tether (USDT/USD) price forecast, by the end of 2022, the average Tether future price is expected to be $1.285. 

Different algorithm-based prediction site, Wallet Investor, puts the USDT price prediction for 2022 at a range between $0.988 and $1.023. Its prediction for the Tether coin for 2023 is $1.003, with a minimum of $0.972 and a maximum of $1.039. For 2030, Wallet Investor’s projection pins the average price for the Tether token at $1.004, with a minimum of $0.927 and a maximum of $1.087.

Another forecasting firm, DigitalCoin, gives a USDT forecast of USD 1.01 for every month until December 2028.

What will Tether be worth in 2025?

Wallet Investor foretells that Tether’s average value will be $1.004 across 2025, with lows of $0.927 (21 and 24 November 2025) and highs of $1.087 (20 December 2025). 

Meanwhile, Digital Coin Price predicts Tether’s value to be $1.01 for each year until 2028 – and 2025 is no exemption. 

Is Tether a good investment?

Possibly. Because it’s a stablecoin, it should keep to a worth of $1, give or take a couple of cents. That’s the point of it – it isn’t meant to gain or lose money in and of itself, but rather to be a stable store of value. This is why a tether price prediction manages to be a reasonably undramatic affair compared to other cryptocurrencies. 

Note that algorithm-based forecasts can be incorrect, as past performance does not ensure future outcomes. Forecasts shouldn’t be used as a replacement for your research. 

Always conduct your own due diligence before investing, and never invest or trade money you cannot allow losing.