The Tether stablecoin (USDT) appears to have failed in convincing investors that it is able to handle mass redemptions in the market.
Data from Curve- the largest DeFi stablecoin exchange- shows that its biggest liquidity pool is largely skewed towards USDT. This indicates that traders are swapping the coin in favour of other stablecoins- namely USDC and DAI.
65% of the so called 3pool on Curve consists of USDT- about $650 million of the token. The remaining 35% of the pool is made up by USDC and DAI equally. At the time of writing, USDT is still trading marginally below its dollar peg, and has been for nearly two months. It is also trading at a discount to USDC and DAI.
With crypto markets crashing to their weakest levels since 2020, traders are uncertain over what tokens could implode next.
USDT sales continue despite assurances from Tether
A bulk of the scrutiny towards USDT comes from its de-peg in the wake of the Terra crash. The implosion of the TerraUSD (UST) stablecoin had increased scrutiny towards other tokens.
