Tether’s loss is helping rival Circle's USD Coin1 min read 18 May 2022, 08:58 PM IST
Tether, the world's largest stablecoin, is seeing a rush of redemptions, which is benefiting Circle's USD Coin.
Circle’s USD Coin is taking advantage of the fall in circulation of its closest rival - Tether - continues to decline in a wave of redemptions. On May 12, Tether's USDT momentarily lost its dollar peg and dropped to 95 cents, much below the $1 threshold it is supposed to maintain. Stablecoins are supposed to be pegged to the US dollar one-to-one, and Tether happens to be the world’s largest stablecoin. The setback for Tether's USDT prompted $8.5 billion in redemptions to date, according to CoinGecko data. The collapse of algorithmic stablecoin TerraUSD prompted investors to seek refuge in other crypto-assets that aimed to preserve a one-to-one peg with the US dollar.
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