According to the data, in the past 24 hours, a total of 99 million USDT were sold in Curve's 3pool, with a net outflow of 64.4 million US dollars. In the past 3 days, a total of 205 million USDT were sold in 3pool, and the net outflow amounted to 130 million US dollars. At the same time, according to the latest official data from Curve, as of writing, the proportion of USDT in 3pool has reached 74%, a total of 301,753,409. DAI and USDC accounted for 12.91% and 12.74% respectively.

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Market makers are exiting?

The selling pressure of USDT today reminds us of the rapid drying up of market liquidity in the past month. Recently, the market has performed poorly and seems to have entered a situation of lack of liquidity. Especially in the "15-minute plunge" event on June 10, altcoins generally fell by more than 20%, and mainstream currencies also fell correspondingly. It is worth noting that at that time the market had not yet been affected by the SEC regulatory attack. As for the speculation about the reason for the "15-minute plunge", rumors that Jump Trading and DWF are withdrawing liquidity and delisting have also appeared in the market.

In fact, this speculation is not groundless. Today, Andrei Grachev, managing partner of DWF Labs, tweeted that the current market 24-hour spot transaction volume has dropped to $23 billion, the lowest value since the winter of 2019. He revealed that the trading platform began to require the transaction volume and liquidity of the project, otherwise it will be removed from the market. Retail activity is also relatively low, but for those looking to speculate, make money, or lose money, they still need something to fill their needs. Even coins with large market caps can experience price fluctuations of 20-30% within 24 hours.

Additionally, Grachev explained that IDOs, IEOs, and direct listings are all falling out of favor, and many are waiting for something new to come up, including the Binance Launchpad project, as it always boosts retail activity. If a project is successful, many others will try to emulate it. “Projects, exchanges, market makers, and other market participants are working behind the scenes to fix the market. While there is no 100% solution, these efforts will definitely bring some benefits to the market. We are currently at a low point in market activity. But the future of prices is still uncertain. Within a few months, our market activity will hopefully increase and drive prices higher, depending on how lucky we are.”

Andrei Grachev's statement is clearly reflected in the Move star Sui who once shone in the industry. Previously, Sui, who had launched IEOs on OKX, Kucoin and other trading platforms strongly, the Token price has been sluggish after a short-term surge. Although OKX has supported the nascent projects of the Sui ecology many times, the price performance of its Token SUI is still very sluggish, falling all the way. According to informed sources from institutions, due to the exhaustion of liquidity and the huge selling pressure of IEO, many institutions and market makers are unwilling to provide liquidity for SUI. A former celebrity public chain seems to be slipping towards the edge of the "Heavenly Death Project".

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Will USDT be depegged?

With the reappearance of USDT's FUD, some people in the market are eager to try and prepare to short USDT. Will USDT be severely decoupled again?

Some voices from the community questioned this. A user named Spreek (@spreekaway) on Twitter said that Curve’s capital pool has very little liquidity and is no longer an important source of liquidity. The overall market liquidity has declined, and Curve seems to have lost its pricing power.

It’s worth noting, Spreek noted, that during the last Tether decoupling event, Curve’s capital pool was roughly six times larger than it is today. It has also been suggested that secondary liquidity is usually first consumed before redemption due to the 10 basis point redemption fee. This time around, the depletion of secondary liquidity required fewer outflows than last time. By looking at the volume when the price hits the redemption price, you can get an idea of ​​how concerned people are about it. If there's a lot of volume trading below the redemption price, that's a sign of more concern.

When the liquidity of a stablecoin is too concentrated, once the supply or liquidity of the stablecoin is threatened or fluctuates, it may have a greater impact on the entire Curve platform and users. This may lead to instability and uncertainty in the market. Excessive concentration may lead to unbalanced liquidity. While some stablecoins have excess liquidity, other stablecoins have insufficient liquidity. This may affect the efficiency and cost of transactions, and have a certain impact on price formation.

"Will there be a serious decoupling of USDT again?" Faced with this question, Tether CTO Paolo Ardoino said on Twitter that today's market is turbulent, so it is easy for attackers to take advantage of this general sentiment, "But Tether, as always, is ready to let They come and we are ready to redeem any amount of funds.”

BlockBeats reminds that with the development of the market, the concentration of USDT in Curve 3pool is still increasing, and users should pay attention to related risks. At the same time, BlockBeats will continue to pay attention to the changes in the Curve ecosystem to understand the dynamics and impact. Please pay attention to BlockBeats' continuous reports.