Over $7.5B in Tether (USDT) Redeemed in the Last Week as Stablecoin Anxiety Hits the Crypto Markets

Abstract:

• Over $7.485 billion value of Tether (USDT) has been redeemed for US {dollars} within the final week.
• The overall provide of Tether (USDT) has decreased from the current all-time excessive of $81.237 billion to $75.75 billion.
• The redemption of Tether and the decline of its circulating provide come on the backdrop of each UST and USDT depeging.
• Tether’s CTO has confirmed that USDT can sustain with market demand for the stablecoin and redemption providers for USD.

Over $7.485 billion value of Tether (USDT) has been redeemed for US {dollars} within the final week. In accordance with a current report on stablecoins by Glassnode, the circulating provide of Tether has declined from close to the $81.237 billion all-time excessive to $75.75 billion within the said interval.

The report by Glossnode goes on to elucidate that the redemption of Tether for USD may need been catalyzed by the preliminary large depegging of TerraUSD (UST) that quickly affected USDT’s personal peg to the $1 mark. The report said:

While UST was vital in dimension ($21B), many think about USDT at $83B in dimension to be systemically vital to the market in its present type, being the dominant quote pair on many exchanges.

Over the interval from noon 11-Might to noon 12-Might, USDT traded under its $1 peg to a low of $0.9565, earlier than recovering inside 36hrs to commerce at a slight low cost of $0.998.

Tether introduced on 12-Might through the worst of the peg stress that redemptions remained open and energetic, and that $2B value had been already underway.

Tether is Dedicated to All Redemptions from Verified Clients

On the said twelfth of Might, Tether issued an official statement by means of its web site, additional confirming that the corporate continues to honor redemptions of USDT for USD at a one-to-one ratio. The workforce at Tether additionally reiterated that USDT has ‘maintained its stability by means of a number of black swan occasions and extremely risky market circumstances and even in its darkest days Tether has by no means as soon as did not honor a redemption request from any of its verified clients.’

Tether’s CTO Responds to Questions About USDT’s Reserves

Earlier right now, the CEO of CryptoQuant, Ki Younger Ju, requested Tether’s CTO, Paolo Ardoino, in regards to the standing of an audit report on USDT’s reserves. In accordance with Mr. Younger Ju, regulators and establishments are ready on a affirmation on whether or not Tether’s $75 million or so value of USDT, is fully-backed or not.

In his response, Mr. Ardoino cited the above $7 billion value of USDT redemption for USD as proof that the corporate has the liquidity to show that the stablecoin’s reserves do exist.

A screenshot of the conversation between the CEO of CryptoQuant and Tether’s CTO might be discovered under.