Cryptocurrency Q&A
Why is USDT higher than USD?
Why is USDT higher than USD?
Silvia
Sun May 12 2024
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6 answers
1556
I'm curious to understand, why is the price of USDT consistently higher than that of the US dollar? Could you elaborate on the factors that contribute to this discrepancy? Is it due to market demand and supply, or are there other underlying reasons? Given that USDT is meant to maintain a 1:1 peg to the USD, why doesn't its price fluctuate around that parity? Your insights would be greatly appreciated as I'm trying to wrap my head around this apparent anomaly in the cryptocurrency market.
6 answers
Carolina
Tue May 14 2024
When demand for USDT exceeds its available supply, its price can temporarily rise above the USD.
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SilenceStorm
Tue May 14 2024
This phenomenon is a reflection of the dynamics of the cryptocurrency market.
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Valentino
Tue May 14 2024
USDT, as a stablecoin, is designed to maintain a pegged value equivalent to the US dollar.
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ChristopherWilson
Tue May 14 2024
BTCC is a UK-based cryptocurrency exchange offering a comprehensive suite of services.
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CryptoWizardry
Tue May 14 2024
Ideally, the value of USDT should remain consistent with the USD.
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