Tether (USDT), the world’s largest stablecoin market cap, has registered a continuous decline in recent weeks. It has now shrunk to under $70 billion.
Is USDT losing the race?
Amid increased volatility in the global cryptocurrency market, the collapse of Terra’s UST left a major dent in stablecoins. The USDT token’s market cap dropped to $69.14 billion. It is the lowest the token has registered in the past eight months. The 24-hour trading volume is also down 30% to $54.2 billion.
According to Coingecko, Tether’s total market value has fallen by about 7% in the past 30 days. Meanwhile, the highest capitalization of $83.15 billion was registered on May 10, 2022. Since then, it has followed a downward trend. However, Circle’s USDC is up 4.7% in the past 30 days.
Earlier this week, USDT lost its US dollar pegged value. However, it somehow managed to recover it. Meanwhile, about $3.1 billion has been taken out of Tether’s market cap in the past 3 days. Investors are reported to have done this to escape the possibility of another Terra-esque crash.
TRON’s stablecoin (USDD) recent, the pegging has heightened investor fear. The USDD price fell to $0.96 on June 15, 2022. However, Justin Sun, head of TRON, made plans to recover the damage.
Tether refutes rumors
Tether came forward to clear the air about the rumors spreading about their Commercial Paper Holdings. It mentioned gossip that his portfolio is 85% backed by Chinese or Asian commercial paper. It added that they are trading at a 30% discount. Tether completely disproved these rumors. It stressed that this could cause further panic in the already tense market.
The blockchain company has announced that more than 47% of total USDT tokens reserves are now under US Treasury bonds. The current commercial paper portfolio has been reduced to 11 billion and will be around 8.4 billion by the end of this month.
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This post Tether USDT Market Cap Drops Below $70 Billion as Redemptions Increase
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