Stablecoins gave digital currencies a whole new use case and value, and USDT is one of the largest representatives of that market.
USDT was created in 2014 on the Omni Layer protocol that Ethereum and Tron later adopted. The primary goal of USDT was to provide a stable cryptocurrency invulnerable to the volatility of digital currencies.
USDT is now backed up by an equal amount of US dollars, meaning 1 USDT equals 1 USD.
Though it might not be an appealing choice from an investment point of view, Tether can act as a stable store of value.
Among the many advantages of Tether, we can name the following:
Price stability. Many exchanges and companies accept payments in Tether since its price is stable and predictable and is not exposed to the volatility associated with the crypto market.
Low fees. Transaction costs for fiat transactions might be relatively high. However, this does not apply to USDT since the fees for Tether transferring are lower.
Faster transactions. Crypto coin transactions do not depend on bank holidays or after-hours, which is why they are faster than fiat transfers.
Global nature. International payments with fiat currency can be problematic. However, USDT makes it possible to effortlessly transfer coins to anyone globally via a crypto payment gateway.
USDT is the most used stablecoin and the third biggest coin by market value, and almost 75% of crypto investors have USDT in their digital wallets. The stable prices, low fees, global nature and other benefits of Tether can explain this.