Tether: The Stablecoin seeing Volatility
Tether makes up 85% of the total liquidity in Curve's 3pool. Even though the stablecoin is seeing some volatility, the price is still close to 1:1 US dollar peg.
- As the world's largest stablecoin by market value, tether (USDT) currently accounts for a whopping 85% of the liquidity pool. The other two components of the pool – MakerDAO's DAI and USDC – make up the remaining 15%. This clearly demonstrates the dominance that USDT has in the crypto space.
- As the leading provider of stablecoin solutions, Tether is seeing its dominance in the market increase. This week, the company's market share has doubled, giving it a commanding lead over its competitors.
- It is interesting to see that there is an increased preference for DAI and USDC over tether, after the recent crash of Terra. This suggests that people are losing faith in tether as a stable currency, and are instead turning to other options that are more reliable. This could have long-term implications for the future of tether, as it may lose its place as the leading stablecoin.
- USDT's dominance of the market pool in July showed that investors wereFearful about the coin losing its 1:1 peg to the US dollar. This could be a sign of trouble for the coin in the future, as investors lose confidence in its ability to maintain its value.
- It seems that the fear has returned to the crypto market, with tether (USDT) seeing some volatility amid rumors that Alameda, FTX's sister concern, is swapping USDT for USDC. This could be a sign that investors are losing confidence in USDT and are instead turning to USDC as a stablecoin option.
- USDT briefly fell to just under 98 cents soon before press time. However, it has been observed that tether has moved in the range of 98 cents to $1.02 most of the time. Therefore, it is likely that the price will rebound soon.
