- Tether has nosedived as low as $0.96, losing its $1 peg amidst a marketwide bloodbath.
- The depeg of Terra’s UST sparked fears of stablecoin collapse among investors, fueling a bearish sentiment on stablecoins like USD Tether.
- $300 million in USDT has been exchanged for USD, as Tether.io honors redemptions.
Tether plummeted to $0.96 during Asian trading hours on Coinbase, losing its $1 peg. The largest stablecoin by market cap appears to be following the path of algorithmic stablecoin TerraUSD (UST), which collapsed to $0.29 on May 11, 2022.
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Tether loses its peg, struggles to recover
The recent collapse of TerraUSD (UST) has triggered a negative sentiment among stablecoin holders.
Crypto investors are bearish on stablecoins in the recent bloodbath. Billions have been wiped off the market capitalization, and stablecoins like USD Tether (USDT), USD Coin (USDC), Binance USD (BUSD), DAI have lost their $1 peg.
As USDT loses its peg, $300 million has been exchanged for USD. So far, Tether.io has honored all redemption requests.
Paolo Ardoino, CTO of Bitfinex and Tether, reminded his 129,500 followers that Tether.io had honored redemption requests despite high volatility in the market.
GM
Reminder that tether is honouring USDt redemptions at 1$ via https://t.co/fB12xESSvB .
>300M redeemed in last 24h without a sweat drop.— Paolo Ardoino (@paoloardoino) May 12, 2022