The Dollar Tether is one of the cornerstones of the digital asset economy, with daily trading volumes that can be double or triple that of Bitcoin. The Tether is a stable coin but not just that, it is the dominant issuer of stable coins. It is pegged to a stable asset, in this case, the U.S. dollar.
Different from traditional cryptocurrencies such as Bitcoin and Ethereum, whose monetary value can fluctuate widely, the Tether is designed to maintain a price of $1 and is backed by large reserves of funds.
Investors use stablecoins as a source of collateral in a volatile world, and coins have become a preferred medium of exchange for payments, trading, lending, and other activities based on blockchain technology.
According to an article published by the New York Times, quoting the finance expert Hillary Allen "Tether is really the lifeblood of the crypto ecosystem".