Tether (USDT) lost its dollar parity on Thursday as the UST’s bankruptcy shocked the stablecoin market amid severe selling pressure across the industry.
According to CoinMarketCap, the slump is as low as $0.97.
- Meanwhile, USDT knock down It fell to $0.969 on Coinbase but has since recovered and traded near $0.98.
- The reason may be that stablecoin sentiment has gone downhill since TerraUSD (UST), which prompted many restless investors to look for safer ways to park.
- There have been a lot of buybacks for stablecoins recently, during which dollars are sent from reserves to users and dollar pegged tokens removed from supply.
- Tether and Bitfinex CTO Paulo Ordoino amid significant stress on USDT and high volatility Confirm Notify USDT holders that over 300 million stablecoin tokens have been redeemed for $1 peg in the last 24 hours.
“GM, please remind me that Tether respects USDt redemption for $1 via tether.to.
In the last 24 hours, I have used over 300 million without breaking a sweat.”
- tethered separately said It means that we have started a chain swap for tokens. In other words, the company converts 1 billion USDT of Ethereum on Tron’s blockchain. It will also move 20 million USDT from Tron to Avalanche.
- Another algorithmic stablecoin showing signs of a departure from USD is Neutrino USD (USDN) from the Waves blockchain ecosystem. USDN fell to 23 cents on Wednesday.
- As the UST epidemic spreads, other lesser-known algorithmic stablecoins fear a similar fate.
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