After the collapse of the UST, the USDT has lost almost $10 billion in reserves.
A stablecoin is a cryptocurrency that is linked to the value of another money or commodity. The most common of these coins are based on the US dollar, which means that their value is usually fixed at $1 (thus the term “stable” coin).
TerraUSD was one of the most popular stablecoins on the market at the start of this month, even entering into the top ten crypto list. It’s hardly surprising, however, that the demise of such a coin sent shockwaves across the crypto market.
One of the side consequences was that USDT saw a lesser scale de-peg event. Investors hurried to redeem their Tether as anxiety rippled through the market.
The coin’s price dropped to as low as $0.97 during this period. Tether, on the other hand, didn’t take long to return to its previous level of $1.
Tether USD’s market worth has dropped by about $10 billion since the UST incident, putting a dent in the number one stablecoin’s supremacy.
The graphic below, taken from the most recent weekly Arcane Research report, depicts the trend in the market capitalization of the leading stablecoins so far this year.
Tether USDT Market Capitalization
As seen in the graph above, the market capitalizations of BUSD and USDC have lately increased sharply, bringing year-to-date gains to 28 percent and 26 percent, respectively.
USDT, on the other hand, has lost market cap since the beginning of the year, with negative returns of 6.5 percent.
This pattern might indicate that the market is transitioning away from Tether and toward alternative stablecoins like USDC and BUSD, with Tether no longer being the most popular USD crypto.
Bitcoin’s price is hovering at $29.3k at the time of writing, down 1% in the past seven days. The cryptocurrency has lost 25% of its value in the last month.
Bitcoin appeared to be gaining momentum beyond the $30k threshold a few days ago, but it has now fallen back below it.