Tether, the operator of the world’s largest stablecoin USDT, has seen US$10 billion of its market capitalization shaved off since TerraUSD’s (UST) collapse.
See related article: Nearly half of Tether reserves are now in US Treasury bills
- USDT’s market capitalization was at US$73.35 billion at the time of publishing, following an all-time high of US$84.15 billion on May 12, CoinGecko data showed.
- Tether’s redemption program allows users to trade in USDT for fiat currency, which results in the collateralized stablecoin dropping in total market value.
- This came after algorithmic stablecoin TerraUSD, which is meant to be pegged to the U.S. dollar, traded at US$0.069 on Monday morning Asia time, according to CoinGecko.
- Tether said in its latest attestation that commercial paper in its reserves decreased by 17% to $20.1 billion in Q1 2022 from the previous quarter.
See related article: Tether stabilizes after burning 3 billion tokens amid redemptions