According to CoinMarketCap, the dip was as low as $0.97.
- On the other hand, USDT fell to $0.969 on Coinbase but has since recovered to trade near $0.98.
- The reason can be attributed to the fact that stablecoin sentiment has gone downhill following the TerraUSD (UST) saga, prompting many unsettled investors to look for safer ways to park.
- For the past few days, redemptions have been high for stablecoins, where a dollar from reserves has been sent to the user and the token tied to the dollar has been removed from their stash.
- Amid significant USDT stress and high volatility, Tether and Bitfinex CTO Paulo Ordoino confirmed to USDT holders that over the past 24 hours more than 300 million stablecoin tokens have been redeemed to their $1 peg.
“GM, reminder that Tether honors USDt redemptions at $1 via a tether.to.
>300 million redeemed in the last 24 hours without a sweat.”
- Separately, Tether said it has started a chain exchange for its tokens. Namely, the company will receive a billion USDT from Trons Blockchain convert Ethereum‘s. Additionally, 20 million USDT will be provided by Tron after transferred Avalanche.
- Another algorithmic stablecoin that was showing signs of moving away from USD was Neutrino USD (USDN). waves-Blockchain ecosystems. USDN tumbled as low as 23 cents on Wednesday.
- As UST contagion spreads, other lesser-known algorithmic stablecoins fear a similar fate.
Source: Crypto News Deutsch