The market capitalization of Tether, the world’s largest stablecoin, has dipped to an eight-month low of US$69.4 billion, according to CoinGecko data.
See related article: Tether, USDT market cap has dropped by US$10B since UST collapse
- Tether’s market cap has fallen almost US$3 billion since June 14 as investors pull out in a market-wide retrenchment and amid fears of a repeat of the Terra UST stablecoin collapse last month.
- Over the last 24 hours, Terra’s market cap fell by around US$650 million while its circulating supply fell to around 69.2 billion, also the lowest since October last year.
- Tether briefly lost its peg to the U.S. dollar earlier this week, but has since recovered.
- This week, Tether denied claims that 85% of its commercial paper portfolio used to back the stablecoin comprises Asian and Chinese commercial paper that is trading at a 30% discount.
- In a statement, the company said its reserves for backing the stablecoin comprise 47% U.S. treasuries and less than 25% commercial paper.
- In the same statement, the company rejected claims it has exposure to the Celsius lending platform and crypto hedge fund Three Arrows Capital, both of which are the subjects of insolvency risk speculation.
See related article: Nearly half of Tether reserves are now in US Treasury bills