USDT has failed again, who is FUD?
Today, the crypto market fell sharply.
In the early hours of the morning, with the end of the interest rate meeting, BTC fell, once falling below $25,000, a three-month low.
As a "reserved program" in the bear market, the stability of USDT has been questioned again.
According to the data monitored by 0xScope, a total of 99 million USDT were sold in the Curve 3 pool in the past 24 hours, with a net outflow of 64.4 million USD. In the past 72 hours, 205 million USDT were sold in 3 pools, with a net outflow of 130 million USD.
Curve data shows that the 3 pool pools have been seriously skewed, of which USDT accounts for as much as 75%.
Although USDT has not yet undergone a serious decoupling, the panicked market sentiment still has a negative situation for USDT.With the intensification of FUD and capital flight, USDT may face more pressure.
At present, the USDT/USD exchange rate is around 0.997. Although it is not considered to be unanchored compared to the past history, a large number of funds have escaped. Dan Smith, a senior analyst at Blockworks Research, further warned of the risk of continued decline in the future,image description
Picture from Coingecko
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USDT recovers rapidly
Although on the emotional level, USDT seems to be "burying hidden worries" at present. But judging from the data, not only has USDT not been abandoned, but it has recovered extremely quickly.
According to Coingecko data, the current market value of USDT is 83.3 billion US dollars. And its market value has experienced a rapid rise in recent months. Since entering 2023, the share of USDT has continued to increase, and the current market value has increased by about 15 billion US dollars compared with the beginning of the year.
Observing the market share of USDT in stablecoins is even more obvious. At present, USDT’s market share is about 66%, and it has continued to rise for nearly half a year.
In the early years, USDT’s dominance was extremely strong. Later, with the rise of USDC and BUSD, USDT’s dominance continued to decline, and the gap between USDC and USDT gradually narrowed. However, with the advent of the regulatory storm and the US banking crisis, USDT has grown rapidly again this year.
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Tether Soothes Markets amid Mixed Responses
Faced with USDT's current poor liquidity performance, Tether CTO Paolo Ardoino expressed optimism. He said on Twitter, "The market is volatile today, so it is easy for attackers to take advantage of this general sentiment. But Tether is ready as always. Let them come, we are ready to redeem any amount." Under a tweet, "Please do whatever you can to maintain the peg no matter how illegal it may be. Ty sir" (brother, please do your best to restore the anchor, no matter how illegal the means are, okay) appeared frequently.
This line has more or less been stained with some meme attributes. Because for Tether, the USDT run crisis has already happened more than once, and now this price fluctuation is not as serious as it used to be for Tether. Tether's official Twitter did not even make a special statement or voice on the current market situation.
For some large investors and giant whales, the volatility of USDT also brings them arbitrage opportunities. According to the data monitored by Lookonchain, the giant whale address starting with 0xd275 borrowed 50 million USDC from Aave after USDT was slightly decoupled, and began to purchase USDT for arbitrage.
At present, under the continuous blow of the regulatory storm in the United States and the sharp decline in the market, every negative news, rumor, and FUD in the encryption world will be magnified by investors in an unusual way. This price fluctuation of USDT appears to be particularly "untimely".
Although there are no definite problems with Tether yet, once the stablecoin runs out of crisis, can the encryption world withstand another systemic collapse crisis? This will become a lingering question in every currency holder's mind for some time to come.
