Tether (USDT), the largest stablecoin and the third largest digital forex by market capitalization, continues dropping its market worth amid the present market downturn.
On June 16, USDT’s market cap dropped under $70 billion for the primary time since October 2021. The drop adopted a cascade of repeated declines shortly after the USDT market worth reached its all-time excessive above $80 billion in May.
At the time of writing, Tether USDT’s market capitalization stands at $69.3 billion, up round $300 million from the multi-month low, in line with information from CoinGecko.
Tether’s largest rival, USDC, is the second-largest U.S. dollar-pegged stablecoin backed by the peer-to-peer funds know-how firm Circle. The stablecoin reached $50 billion market cap in February and has by no means overwhelmed Tether’s in market cap up to now.
While Tether has been dropping its market share over the previous few weeks, different stablecoins just like the USD Coin (USDC) have been gaining worth just lately. As such, USDC market cap surged from about $48 billion in mid-May to $55 billion in mid-June.
Tether’s shrinking market cap comes amid the continuing market panic and uncertainty, with the market capitalization of all cryptocurrencies dropping under $1 trillion for the primary time since February 2021.
Related: Total provide of stablecoins dropped sharply for first time ever in Q2
Tether agency has been actively posting statements to guarantee buyers that the corporate has not been affected by the continuing crypto lending disaster. On June 13, Tether declared that points across the crypto lending platform Celsius had nothing to do with the agency and wouldn’t influence USDT reserves.
Tether subsequently introduced plans to eliminate business paper backing for the USDT stablecoin on June 15. The agency didn’t reply to Cointelegraph’s request for remark.