Tether (USDT) is a prominent stablecoin in the cryptocurrency market, designed to maintain a value of approximately one U.S. dollar. This stability is achieved through a pegging mechanism, where Tether Limited, the company behind USDT, claims to hold reserves equivalent to the amount of USDT in circulation.

USDT plays a crucial role in the crypto ecosystem by providing traders and investors with a less volatile asset compared to other cryptocurrencies like Bitcoin or Ethereum. Its stability allows for easier trading, hedging against market fluctuations, and quick movement of funds between exchanges. With a market capitalization of approximately $147-$148 billion, USDT stands as the largest stablecoin and one of the top cryptocurrencies by market cap. Its high liquidity and widespread adoption across numerous exchanges make it a fundamental asset for trading pairs and a key component of the decentralized finance (DeFi) landscape.