{"id":22914,"date":"2023-06-15T06:34:11","date_gmt":"2023-06-15T10:34:11","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/massive-usdt-sell-off-on-curve-uniswap-suggests-shift-to-other-stablecoins\/"},"modified":"2023-06-15T06:34:12","modified_gmt":"2023-06-15T10:34:12","slug":"massive-usdt-sell-off-on-curve-uniswap-suggests-shift-to-other-stablecoins","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=22914","title":{"rendered":"Massive USDT Sell-off on Curve, Uniswap Suggests Shift to Other Stablecoins"},"content":{"rendered":"
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Tether\u2019s stablecoin USDT has lost its dollar peg after two major pools for stablecoin trading became heavily imbalanced.<\/p>\n

On-chain data shows traders have been exchanging millions of dollars worth of USDT for other popular stablecoins like USDC and DAI on Uniswap and Curve pools.<\/p>\n

On Thursday, USDT balances on Curve\u2019s popular 3pool, a stablecoin swapping pool comprised of USDT, USDC, and DAI, rose to over 70%, suggesting traders had swapped tens of millions of USDT for USDC and DAI.<\/p>\n

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The ideal balance of the Curve 3Pool should be 33.33% for each of the three stablecoins \u2013 USDT, USDC and, DAI.<\/p>\n

However, the imbalance has led to a substantially larger USDT balance on Curve\u2019s 3pool compared to other stablecoins. As of now, the pool holds over $300 million of USDT and nearly $55 million each of DAI and USDC.<\/p>\n

USDT Loses Peg as Selling Pressure Intensifies<\/h2>\n

The selling pressure has also led to USDT distancing away from its intended peg of $1.\u00a0<\/p>\n

At the time of publication, USDT is trading at $0.996788, down by 0.4% over the past day, according to data by CoinGecko.\u00a0<\/p>\n

In a recent tweet,\u00a0Tether CTO Paolo Ardoino said<\/a>\u00a0markets “are edgy in these days, so it’s easy for attackers to capitalize on this general sentiment.”<\/p>\n

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“But at Tether we’re ready as always. Let them come. We’re ready to redeem any amount.”<\/p>\n<\/blockquote>\n

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It is worth noting that this is not the first time Curve 3Pool has become imbalanced.\u00a0<\/p>\n

Back in March, the pool became imbalanced when USDC and DAI\u2019s ratio increased to over 45% each.<\/p>\n

It also became imbalanced in November last year when\u00a0the crypto exchange FTX collapsed.\u00a0<\/p>\n

A similar imbalance was also observed after the\u00a0Terra ecosystem\u2019s crash\u00a0in May 2022, which saw\u00a0USDT turn volatile\u00a0and temporarily lose its peg.<\/p>\n

Historically, there have been a lot of controversies surrounding Tether, with many questioning claims that it has enough reserves to justify its one-to-one peg claim, as well as the quality of assets making up those reserves.<\/p>\n

USDT Recoups Lost Market Cap<\/h2>\n

The recent selling pressure on USDT comes days after the largest stablecoin in the market saw its\u00a0market capitalization hit a new record high, exceeding $83.2 billion.\u00a0<\/p>\n

The stablecoin managed to recover the $20 billion in market value it had lost following the collapse of rival stablecoin TerraUSD last year.<\/p>\n

While Tether has managed to recover the market value it lost last year, other stablecoins have not been this successful.\u00a0<\/p>\n

For instance, USDC, the second-largest stablecoin, currently has a market cap of around $29 billion, far less than its all-time high record of over $56 billion, according to data by CoinGecko.\u00a0<\/p>\n

Data by Glassnode further shows that USDT currently commands a market share of more than 65%. Other major stablecoins, including USDC, BUSD, and DAI each command a market share of around 24%, 5%, and 4%, respectively.\u00a0<\/p>\n

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