While the Tether (USDT) price had a steep fall, the world’s largest stablecoin also experienced a plunge in its total supply this month as more and more investors traded the token for dollars.
The Tether price saw one of the worst crypto crashes where even the currency’s stable coin USDT depegged against the US dollar trading at $0.95, the lowest level that was ever seen in the last five years.
With the current market crash, the Tether looks to be under too much pressure as the currency’s circulation supply has also bottomed to around $9 billion to $74 billion since the start of the month
It’s been more than 10 days that USDT is trading below its $1 peg and at the moment, the USDT is trading at $0.99 with a plunge of 0.1% over the last 24hrs.
USDT Reserves, A Matter Of Concern
As the UST crashed to its lowest level, Bitfinex, which operates USDT, has come under spotlight to give more details over the reserves that are backing the token.
Bitfinex’s reserves are nothing but the commercial debt notes. Now the organization is stepping back in terms of providing the exact number of debt notes it holds because the Bitfinix exchange is yet to conduct a complete audit of its USDT reserves.
When Bitfinex Chief Technological Officer Paolo Ardoino was recently questioned about the firm’s reserves, he had said that the firm had redeemed $7 billion worth of USDT in 48hrs.
This growing concern about the USDT reserves has pushed the traders towards other stablecoin like Binance USD.
However, this month’s crash is not Tether’s first of its kind. USDT has successfully survived several extreme bear markets since the time it was created. Yet the currency was able to make a successful comeback