Tether has recovered from a mid-October sell-off to trade near parity with the U.S. dollar once more.
The crypto market’s dominant stablecoin had fallen to 86 cents, with speculation surrounding tether’s dollar reserves. Despite fears that the stablecoin may see further selling, the price has since recovered to $0.9921. according to data from Coinmarketcap.
The recovery in tether had been helped by further transparency regarding the dollar reserves, however a recent announcement has stated that the 500 million tokens have also been removed from circulation. The timing of this move suggests that tether are burning tokens in excess of their stated reserves. This could be part of a plan to produce a more transparent audit.
The redemptions and growing competition in the stablecoin market are still signs of discomfort for tether.