The market capitalization of Tether, the world’s largest stablecoin, has dipped to an eight-month low of US$69.4 billion, in response to CoinGecko data.
See associated article: Tether, USDT market cap has dropped by US$10B since UST collapse
- Tether’s market cap has fallen nearly US$3 billion since June 14 as buyers pull out in a market-wide retrenchment and amid fears of a repeat of the Terra UST stablecoin collapse final month.
- During the last 24 hours, Terra’s market cap fell by round US$650 million whereas its circulating provide fell to round 69.2 billion, additionally the bottom since October final yr.
- Tether briefly misplaced its peg to the U.S. greenback earlier this week, however has since recovered.
- This week, Tether denied claims that 85% of its business paper portfolio used to again the stablecoin contains Asian and Chinese language business paper that’s buying and selling at a 30% low cost.
- In an announcement, the corporate stated its reserves for backing the stablecoin comprise 47% U.S. treasuries and fewer than 25% business paper.
- In the identical assertion, the corporate rejected claims it has publicity to the Celsius lending platform and crypto hedge fund Three Arrows Capital, each of that are the themes of insolvency danger hypothesis.
See associated article: Nearly half of Tether reserves are now in US Treasury bills