USDT market capitalisation slides below $70 billion
The total market value of issued Tether stablecoins USDT fell to $69.3 billion. The last time such a figure was seen was in October 2021.
Before the collapse of Terra, the figure stood at $83.42 billion (as of May 1).
According to CoinGecko, the rival Tether stablecoin USDC Coin (USDC) surpassed $55 billion. The $50 billion threshold for stablecoins was breached between May 13 and 14.
During the period, USDT dominance fell from 50.9% to 45.7%, while USDC’s market share rose from 30% to 36.2%.
In May, Tether Holdings Limited выкупил у держателей USDT токены на сумму $10 млрд.
Holders of the stablecoin began moving into fiat amid the collapse of the algorithmic stablecoin UST and the LUNA token. On 12 May the price of USDT briefly lost parity with the US dollar — at that time the issuer bought back assets worth $600 million.
The decline continued in June amid problems at the Celsius crypto-lending platform, which was financed by Tether Holdings Limited. The issuer said the incident did not affect the stablecoin’s reserves.
On June 15, the company denied rumours of dominance in backing Chinese commercial papers. The firm suggested that the information was spread by some ‘coordinated funds’ to gain additional profits in an already stressed market.
Information that Tether was lending to Three Arrows Capital, which reportedly had solvency problems, was also denied by the company.
Earlier, Cumberland, a crypto OTC platform, suggested that the next asset at risk of a crash could be one of the leading stablecoins.
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