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Bitcoin and Ethereum are however two coins in a market that consists of many, many extra: Estimates state there might be around 10,000 in circulation by the tip of 2022. Most of these are relatively small and do not play a significant position throughout the crypto market. Indeed, varied rankings – such as a market cap comparability between a number of cryptocurrencies – point out Bitcoin and Ethereum as the highest two digital currencies. Some of the other coins include Dogecoin (DOGE) – which saw a surge in value after tweets from Elon Musk in 2021 – or LUNA – the algorithmic stablecoin that nearly crashed the crypto market in 2022 after a sizable increase in supply. More notable is the rising market size of stablecoins – crypto linked to real-world property, usually the U.S. greenback – equivalent to Tether (USDT) or USD Coin (USDC).

Tether is a stablecoin, or a currency tied to a fiat currency — on this case, the U.S. greenback. The thought behind Tether is to mix the advantages of a cryptocurrency (comparable to no want for financial intermediaries) with the stability of a foreign money issued by a sovereign authorities (versus the wild value fluctuations inherent with many cryptos).

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