The total market value of Tether-issued USDT stablecoins has fallen to $69.3 billion. The last time such a value was observed in October 2021.
Before the collapse of Terra, the figure was $83.42 billion (as of May 1).
According to CoinGecko, the capitalization of Tether's competitor, USDC Coin (USDC), exceeded $55 billion.During the period under review, USDT dominance decreased from 50.9% to 45.7%, while USDC market share increased from 30% to 36.2%.
What is Tether?
Recall that during May, Tether Holdings Limited bought $10 billion worth of tokens from USDT holders.< /p>
Stablecoin owners began to go into fiat amid the collapse of the algorithmic stablecoin UST and the LUNA token. On May 12, the price of USDT briefly lost parity against the US dollar – then the issuer redeemed assets worth $600 million in a day.
The decline in capitalization continued in June amid problems at the Celsius crypto-lending platform, which was financed by Tether Holdings Limited. The issuer ruled out the impact of the incident on the reserves of the stablecoin.
June 15, the company denied rumors of Chinese commercial paper dominance in collateral. The firm suggested that the information was being spread by some “coordinated funds” to generate additional profits in an already “stressed market.”
The information that Tether is lending to Three Arrows Capital, which allegedly had problems with solvency, was also called false by the company.
Earlier, specialists from the Cumberland cryptocurrency OTC platform admitted that the next asset that is in danger of collapsing will be one of the leading stablecoins.
How Celsius, 3AC and stETH issues will affect the price of Ethereum and the cryptocurrency market
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