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Since Tether temporarily lost its peg to the dollar last week, there has been a notable liquidation. Apparently, the collapse of the cryptocurrency, caused by the collapse of another steblecoin UST Terra, had a significant impact on investor sentiment.
According to CoinGecko, $7 billion worth of Tether was liquidated in one week. The world’s largest stabelcoin has seen its market capitalization drop significantly from $83 billion as of last Tuesday to the current $75 billion.
Nevertheless, Tether is the third largest cryptocurrency by market share. Another stablecoin, USDC, with a market capitalization of $52 billion, is fourth in the ranking. Interestingly, USDC’s float has grown by $4 billion to $52 billion since last week, despite turbulence in the stablcoin market.
Against this backdrop, debate has intensified among traders about the reliability of stablcoins and whether the reserves of funds that act as collateral to secure stablcoin bindings are sufficient.
In a related development, Tether Chief Technology Officer Paolo Ardoino said, “Tether is fully supported.”
We bought out 7 billion in 48 hours without blinking an eye. How many organizations can do the same thing? … We have the liquidity to handle large redemptions and pay at a 1-to-1 ratio. Yes, Tether is fully supported,” he responded to an analyst’s tweet.
#Tether #USDT #fully #supported #reserves