Binance coin has been sitting on number 3 for so long and that position once belonged to Ripple but now that same spot has been claimed by Tether and Binance coin is now following behind being number 4 on the chart.

Some might be seeing this as an opportunity to invest in Tether thinking maybe its gonna go up but well its not what you think. Lets see how it managed to be the number 3 and why it happened. By the end of this article you will be able to see why it happened .

How did this happen?

Below is an image which show the rankings and some figures and these figures will help us see why. If you see on 24hr and 7day trading performance we can clearly see that Binance Coin has been fluctuating more than Tether.

Then on market capitalization Tether is leading with more than $20 Billion and the 24hr transactions on Tether are leading with more than $65 Billion. Numbers do not lie we can see Tether is more liquid as compared to Binance, lets see why this is happening.

Why this is happening?

I am sure we all have heard of stable coins and Tether is one of them and it happened it is the most used. Stable coin do not fluctuate and their price is stable.

So the reason behind the increase in capitalization of Tether is because it is a safe haven in the crypto markets and people use these to maintain the value of their portfolios. We are currently in the bearish market and investors are now liquidating their volatile crypto assets and acquiring these stable assets.

Conclusion

Stable coins are not investment token where you can invest and make money as they are not volatile. They are just bought in times of crisis like these so as to maintain the value of portfolios. When the markets are bullish again these coins will be exchanged for volatile crypto coins.