• has dropped against the U.S. Dollar slightly — causing a bit of a de-peg to the fiat currency.
• CoinMarketCap currently shows that the Tether price (USDT), is at $0.9852, as per the cryptocurrency market tracker.
• We aren’t sure what the reasons were for USDT being slightly less pegged to the dollar.

The largest cryptocurrency stablecoin by market cap, Tether, has dropped against the U.S. Dollar slightly — causing a bit of a de-peg to the fiat currency. CoinMarketCap reports that the current USDT price is $0.9852. There are a few reasons USDT may have lost a little of its peg with the dollar.

USDT may feel some market pressure after USD (UST), was unable maintain its peg. The slight dip could also have something to do with Tether’s recent announcement that they will be using a 3rd party to perform a chain swap — an event where a crypto shifts from one blockchain to another.

According to a tweet made on Tether’s official Twitter (NYSE:) page, Tether will work with a 3rd party to perform a chain swap. Chain swaps will result in 1 billion USDT being converted from Tron’s (TRC20), chain to (ERC20), chain and 20 million USDT from Tron to (ERC20).

According to the post, the total supply of Tether (USDT) “will not change during this process”.

Crypto community members began to wonder about the motivation behind the chain swap. Many in the crypto community expressed concern that the fates of stablecoin and USTs might be the same.

Tron may not wish to have 2 large stablecoins in one chain. Tron’s USDD stablecoin, a cryptocurrency that Tron issued, is growing in popularity. Tether may not be interested in sharing the Tron Chain with USDD to avoid congestion.

Continue reading on CoinQuora