Why is the interest on USDT so high (Why does USDT fall)?
Why is the interest on USDT so high? Why is the interest on USDT so high? This
Why is the interest on USDT so high? Why is the interest on USDT so high? This is because USDT has two types: depositing stablecoins or lending out other stablecoins on exchanges.
Deposit: The ratio of the fiat (bitcoin) balance in the withdrawal account to the amount of digital currency held in the bank account; borrowing and lending method: by transferring funds from one wallet to another.
Deposit:
Deposit stablecoins in USDT/BTC, ETH/BTC, or DAI.
The USDT in the withdrawal account is the cash obtained by users when depositing USDC, Tether, etc., which can be used to provide services for USDT/BTC or other assets.
Withdrawal: Convert USDT into USD and enter the cryptocurrency exchange.
Loan: Pay 1 USDT to the borrower. If the borrower uses USDT during the loan process, they need to repay the loan at the price of 1 USDT, and the borrower’s loan interest rate will be higher.
Lending: After the loan is completed, the loan is automatically executed and returned to the user who collateralized it.
Savings: Determine whether to deposit more USDC, Tether, or other stablecoins based on the ratio of the principal to the loan value. Both of these have certain risks and high risks of uncertainty and volatility.
However, let’s take a look at some other examples:
1. Bitcoin: Increasing every day.
2. Bitcoin Lightning Network: Each block generates an average of 5 transactions fees.
3. Stablecoins on the Tether network: Can process about 100 transactions per second. (Note: 1. The Lightning Network supports Bitcoin’s Lightning Network).
4. Tron network: Processes 10 different transactions per minute.
Why does USDT fall?
According to an analysis by coincryptorama, why does USDT fall? This is because it has fallen from about $100 to over $20 in the past 24 hours. This means that if the market continues to rise, its price will further drop below 30 cents.
So, the question is: why does USDT experience a sudden rise?
We know that the volatility of Bitcoin and Ethereum is very high, and it is an important indicator related to traditional assets, such as the difference in value between the dollar, yen, etc. So people often refer to this phenomenon as a “USDT bull market,” which is actually a typical case-the bear market situation after the 2008 financial crisis; therefore, many people believe that the “USDT bull market” is just a simple short-term correction.
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