Traders Abandon Tether’s USDT Stablecoin, Opt for DAI and USDC Instead
Crypto traders are showing a clear preference for DAI and USDC stablecoins over Tether’s USDT, as evidenced by heavy imbalances in stablecoin pools on Curve Finance and Uniswap decentralized exchanges. Here are the key points:
– Imbalances in stablecoin pools: Data shows that the USDT balance surged to 62% in the Curve 3pool, while USDC and DAI each comprised roughly 19-19% of all assets in the pool.
– Preference for DAI and USDC: The imbalances suggest that investors are increasingly choosing to hold DAI or USDC instead of USDT, leading to more USDT sellers in the pool.
– USDT’s price below $1 peg: USDT’s price has been trading slightly below its $1 peg, dropping as low as 99.76 cents, as a result of the selling pressure.
– Distress in the markets: Imbalances in stablecoin pools indicate distress in the markets as investors seek to offload an asset en masse.
– Similar imbalances in the past: Similar imbalances have occurred during the implosion of Terra and the Silicon Valley Bank crisis that hit USDC issuer Circle.
The reason for the sales remains uncertain at this time. It appears that crypto traders are opting for DAI and USDC as more reliable alternatives to USDT.
By
By
By
By