Tether (USDT) price prediction 2021

What to expect for the price of Tether this year.

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A “stable-coin” designed to act as a bridge between digital and fiat currencies, Tether’s value is pegged (or “tethered”) to the US dollar. It’s designed to offer protection against the volatility of other cryptocurrencies, and is seen as something of a safe haven when the rest of the market experiences a downturn.

However, there’s been increasing controversy surrounding Tether in recent months, so let’s take a look at what all the fuss is about and what it could mean for the viability of Tether in coming times.

Learn more Where to buy Tether (USDT)

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade.

Quick facts

Coin nameTether
Algorithm typeSHA-256
Launch date2014

How Tether works

Tether is pegged to the value of fiat reserves at a rate of 1:1. It’s designed to maintain the same value relative to that underlying fiat currency no matter what is happening to the value of other cryptocurrencies. So if you’re wondering what the price of USDT will be relative to the US dollar in the future, keep in mind that it’s designed to stay as close to US$1 as possible.

Each Tether token is meant to be backed by reserves of traditional currencies held in accounts under the control of Tether Limited, the entity that runs Tether. Tether tokens are most commonly pegged to the US dollar (USDT), but there are also tokens pegged to the euro (EURT) and Tethers pegged to the Japanese Yen are in the works.

Tether is designed to offer protection against the volatility commonly associated with cryptocurrency markets. At the same time, it allows fiat currencies to enjoy the ease of transfer and record-keeping ability associated with digital currencies.

Tether price prediction

Tether tokens are designed to match the value of the currency they’re pegged to; with this in mind, there are a broad range of factors to consider when deciding whether or not to buy any Tether.

What could drive Tether’s growth?

  • Availability. Tether is available in trading pairs on most major exchanges. This means it’s easy to access and may also help to increase the credibility of USDT in the eyes of prospective buyers.
  • Link to crypto. Many cryptocurrency exchanges don’t accept fiat currency. Because it’s pegged to fiat currency, Tether acts as a link between traditional currencies and the world of crypto.
  • Volatility in other cryptocurrencies. When crypto markets go through periods of volatility, so-called “stable-coins” such as Tether are seen as a safe haven by crypto holders. By moving some or even all of their funds into Tether tokens, they can preserve the profits they’ve already made and avoid price drops.
  • Traders avoiding price drops. In January 2018, on the back of slumping cryptocurrency prices, the value of USDT rose to US$1.03. Because its value remains largely the same even when the prices of everything else drops, USDT remains an option for people looking to “ride out” unfavourable market conditions.
  • Bitcoin volatility. In particular, rises in USDT trading volume have been linked to bitcoin volatility. Research released by US investment bank Morgan Stanley in March 2018 revealed that trades between USDT and bitcoin have become more common, with an estimated 14.2% of bitcoin trades paired against USDT, up from less than 1% in October 2017.
  • Supply. At the time of writing, CoinMarketCap listed the circulating supply of USDT at 2,217,140,814, and the total supply at 2,580,109,970 USDT. In March 2018, Tether issued another 300 million USDT tokens, following on from the February release of 86 million euro-backed EURT and 61.1 million USDT. As the circulation of Tether tokens grows, and more and more money reportedly flows into Tether’s reserve accounts, the tokens could come to be seen as a replacement for USD and other fiat currencies as a store of value.

What could hold Tether back?

  • Bitfinex and Tether. Tether is managed by a company known as Tether Limited, which is owned by the CEO of cryptocurrency exchange Bitfinex. Bitfinex is in turn often referred to as the owner of Tether. However, some analysts have suggested that USDT is probably artificially propping up the value of bitcoin. One report found that about 50% of the total rise in the bitcoin price over a set period of time occurred within the two hours following a new delivery of Tether tokens to Bitfinex. This report and others have therefore concluded that it's much more likely that Tether is being used to manipulate the price of bitcoin.
  • Lack of reserves. Tether claims that all the USDT it issues are backed 1:1 by US dollars held in its reserves. However, in late 2017 and early 2018, Tether has been rocked by criticisms that it may not have sufficient fiat reserves to back the 2.3 billion Tether tokens it has issued – in other words, that it doesn’t have US$2.3 billion. However, it’s worth pointing out that there’s statistical analysis that supports Tether’s claims to have sufficient reserves (though it may need to update its KYC/AML procedures to avoid getting shut down), as well as analysis suggesting that it doesn’t have enough cash reserves. Bitfinex has also promised legal action against one of its most prominent critics.
  • Audit or no audit? In response to these suggestions, Bitfinex and Tether came out in the press and promised an independent audit. However, Tether then parted ways with the auditor, Friedman LLP, in January 2018, and the audit was cancelled. “Given the excruciatingly detailed procedures Friedman was undertaking for the relatively simple balance sheet of Tether, it became clear that an audit would be unattainable in a reasonable timeframe,” Tether said in a statement.
  • Fears of a market crash. A combination of the above problems has led to concerns of a Tether market crash. Considering Tether’s close links to the price of bitcoin, not to mention bitcoin’s importance to the performance of cryptocurrency markets as a whole, this could have serious consequences for the crypto sphere. The fact that Bitfinex and Tether were subpoenaed by the US Commodity Futures Trading Commission suggests that USDT can expect increased scrutiny in coming times.
  • Hack. In November 2017, Tether reported that $30,950,010.00 in Tether tokens were stolen from its treasury wallet as the result of a hack. While no customer funds were stolen as a part of this security breach, it could still have an impact on Tether’s credibility among the general public.

Where to buy Tether

Name Product Deposit methods Fiat Currencies Cryptocurrencies
Swyftx Cryptocurrency Exchange
Bank transfer, Credit card, Cryptocurrency, Debit card, Osko, PayID


Buy and sell a wide range of cryptocurrencies at competitive rates on this Australian exchange.
CoinSpot Cryptocurrency Exchange
Bank transfer, BPAY, Cash, Cryptocurrency, POLi, PayID


CoinSpot is an Australian exchange that lets you easily buy, sell and trade more than 250 cryptos.
Binance Cryptocurrency Exchange
Credit card, Cryptocurrency, Debit card, Osko, PayID


Binance is the world’s largest exchange by trading volume. Get started with instant zero fee AUD deposits and withdrawals in Australia, and enjoy low trading fees, a wide selection of cryptocurrencies and 24/7 local customer support.
Cointree Cryptocurrency Exchange
Cash, Cryptocurrency, POLi, PayID, Online banking


Finder Exclusive: New members get $10 bonus after first trade. T&Cs apply.
Buy 150+ cryptocurrencies with fast-growth portfolio insights, and the ability to swap any coin to any other instantly.
Easy Crypto Cryptocurrency Exchange
Bank transfer, Cryptocurrency, POLi


Easy Crypto is a simple way to buy and sell a range of cryptocurrencies, straight to and from your own crypto wallet.
Crypto.com App
Credit card, Cryptocurrency, PayPal, TransferWise, SEPA


Get 0% fees on credit/debit card purchases for 30 days after signup.
Buy 80+ cryptocurrencies, earn up to 8% on holdings, pay with your crypto for cashback at stores, get loans and more with this complete crypto-finance platform.
KuCoin Cryptocurrency Exchange
Cryptocurrency, PayPal, Wire transfer, Credit or Debit Card, SEPA


Finder Exclusive: Get up to 10 USDT in trading fee rebates for signing up and making a deposit, and up to 30 USDT in trading fee rebates after buying with fiat. T&Cs apply.
Browse a variety of coin offerings in one of the largest multi-cryptocurrency exchanges and pay in cryptocurrency.
OKEx Cryptocurrency Exchange
Bank transfer, Cryptocurrency, iDEAL, PayPal, POLi, SEPA, Faster Payments (FPS)


Promo: Earn US$10 in BTC when you refer a friend and they purchase $100 of cryptocurrency. T&Cs apply.
Listing over 100 cryptocurrencies, OKEx offers its users a variety of payment methods and coins to choose from.
Independent Reserve Exchange
Cryptocurrency, SWIFT, Osko, PayID, EFT


Trade AUD and other fiat currencies against a wide range of cryptos at competitive rates.
Bittrex Global
Bank transfer, Credit card, Cryptocurrency, Debit card


Buy from one of the largest cryptocurrency exchanges with a selection of over 190+ cryptocurrencies and 3 USD pairings.
Paxful P2P Cryptocurrency Marketplace
Bank transfer, Cash, Cryptocurrency, PayPal, Credit or Debit Card, Payoneer
DZD, XCD, ARS, AMD, AWG, AUD, AZN, BSD, BHD, BDT & 140+ more


Connect with bitcoin buyers and sellers through this peer-to-peer marketplace that accepts cash, credit and more than 300 other payment methods.
Bitfinex Professional Trading Exchange
Credit card, Cryptocurrency, Bank Wire


Cryptocurrencies are a highly volatile investment product. Your capital is at risk.
Spot trade all of the major cryptos on this full-featured exchange and margin trading platform.
CEX.IO Cryptocurrency Exchange
Bank transfer, Credit card, Cryptocurrency, SWIFT, SEPA, Faster Payments (FPS)


Disclaimer: Highly volatile investment product. Your capital is at risk.
Use your USD, EUR or RUB to buy and sell cryptocurrency at competitive exchange rates and with high maximums for verified accounts.
Zipmex Cryptocurrency Exchange
Bank transfer, Cryptocurrency


Buy, sell and trade BTC, LTC, ETH, XRP, BCH, USDT, OMG, MKR & 5+ more on this Singapore-based exchange.
CoinField Cryptocurrency Exchange
Cryptocurrency, Interac e-Transfer, Wire transfer, Credit or Debit Card, SEPA, EFT, Faster Payments (FPS)


Canadian-founded Bitcoin and cryptocurrency exchange available in 193 countries.
Coinbase Pro
Bank transfer, Cryptocurrency, Debit card, PayPal, Wire transfer


Formerly known as GDAX, Coinbase Pro is a US-based exchange which offers fiat currency payment options, including wire transfer, ACH bank transfer and SEPA.
Hotbit Cryptocurrency Exchange
Hotbit Cryptocurrency Exchange
Cryptocurrency, Epay


A multi-currency exchange with 150+ pairings that can be accessed through desktop as well as a mobile app.

Compare up to 4 providers

Tether’s competition

Tether isn’t the only stable-coin on the market, and given the uncertainty and questions surrounding USDT, crypto enthusiasts may look to one of those competitors for a safe store of value. Cryptourrencies to watch include:

  • TrueUSD (TUSD). This USD-backed stablecoin allows users to exchange USD directly with an escrow account, with smart contracts used to ensure a 1:1 parity between TrueUSD and USD in the accounts.
  • Dai (DAI). A cryptocurrency that has its price stabilised against the value of the USD, Dai is created by the Dai Stablecoin System that runs on Ethereum.
  • kUSD (KUSD). Kowala’s kUSD is a stable currency pegged to the USD, and features stability algorithms that adjust the currency’s supply based on its price relative to the USD.
  • DigixDAO (DGD). This platform offers Digix Gold Tokens (DGX), which are backed by gold bars, on the Ethereum platform.

Beyond 2021: What does the future hold for Tether?

Stablecoins are designed to provide stability and security, offering protection against the notorious volatility of cryptocurrencies. They’re seen as a crucial part of the future growth of the crypto ecosystem – after all, offering loans or transacting with a currency that could fluctuate 25% in one day is simply not practical – but, as yet, no universally accepted and trusted stablecoin has been developed.

Tether has in the past been a safe haven for buyers trying to avoid losses in bear markets, and its widespread availability and easy accessibility make it an important link between fiat and digital currencies. On crypto-only exchanges, Tether is seen as an equivalent to the USD.

However, if it’s to have any viable future as a stablecoin, the concerns and criticisms levelled at Tether in recent times will need to be addressed. With questions remaining about the level of reserves Tether has, not to mention the fears raised by the cancellation of an independent audit, its future is looking decidedly murky.

The concerns are nicely summed up by Juan M. Villaverde from Weiss Cryptocurrency Ratings. After referencing Tether’s failure to provide evidence of sufficient capital reserves he outlines some key facts:

  • “Tether is the only cryptocurrency with trading volume that regularly exceeds that of its market cap.
  • “This means the entire Tether supply changes hands regularly, sometimes more than once a day.”
  • Tether is therefore one of the main sources of liquidity in the cryptomarkets. Liquidity is essential to keep prices stable and enable seamless trading.
  • If this source of liquidity suddenly evaporates, the consequences could be big.

“I don’t want to speculate on what the exact sequence of events would be if there were a run on the Tether company — if investors rush to redeem their Tether for U.S. dollars,” he writes.

“Suffice to say that, if the liquidity rug is pulled from under the market, the consequences will not be good.”

Bottom line

Do your own research. There’s no shortage of information out there about Tether’s perceived strengths and weaknesses, so it’s up to you to do some digging and review all the details you can find. However, there are some undeniable concerns surrounding USDT, so make sure you’ve considered all angles before deciding whether to park your money.

Images: Shutterstock

Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

At the time of writing, the author holds IOTA and XLM.

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