Origin
The Tooth Fairy originated from early Europe, wherein if the sixth child’s tooth fell out, he or she would be rewarded with a certain gift. However, some parents decided to leave glitter to represent a magical “Tooth Fairy” rewarding them.
Other versions such as Northern Europe are similar, but are gifted even when the first tooth comes out.
Current Events
Tooth Fairy is depicted in the Dreamworks film Rise of the Guardians. In the film she can fly, and is similar to the Mocking Bird. She commands an entire army (although they do not fight and are relatively weak) of her offspring.
Powers and Abilities
Also most versions of her (or him) have not shown to have powers, it is generally accepted that he/she has an extraordinary expertise for stealth or invisibility. He/she also possesses flight via wings on his/her back.