The risks associated with stablecoins are highlighted by the recent fluctuations in USDT's value, raising concerns across the crypto community.
In Brief
The total stablecoin market In the past 24 hours, the circuit for stablecoins has diminished by 0.25%, with average price shifts around 0.71%. Notably, USDT has decreased by 0.23% and is hovering near a local low.
Stablecoins These stablecoins currently seem to lack stability due to the erratic behavior of the cryptocurrency market. Over the last day, there has been a 0.25% decrease in the overall market capitalization for stablecoins, along with an average price fluctuation of 0.71%.
Following the troubling signals concerning depegging seen in USDT, observed fluctuations have led to a noted price drop of 0.23% in the last 24-hour period, bringing its value down to approximately $0.997. This decline reflects a loss in value totaling about $270 million in market capitalization. USDT Despite currently being pegged close to $1, conflicting data from Trading View indicates that USDT's price sits at $0.9974 as of this moment.
Binance’s data currently places USDT The instability of USDT in relation to the US dollar seems to correlate with a rise in USDC’s market capitalization, which has increased by around $40 million since USDT's recent depegging. Furthermore, the trading activity for USDC has surged by an impressive 60% in the last day.
Other stablecoins like DAI and BUSD have also seen significant downward trends, with reductions in market cap of about $80 million and $90 million, respectively. Data from Crypto.news indicates a remarkable 255% spike in DAI's trading volume in the past 24 hours.
The instability of USDT also coincides with a dramatic increase in the annual percentage rate (APR) of its supply on the Aave platform, which surged from 2.75% to nearly 15% within less than a day. Lending platform statistics reveal that both variable and stable annual percentage yields (APY) have also seen a notable rise.
Stablecoins: Understanding the Concept and Functionality of Crypto Stablecoins (2023).
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In line with the Trust Project guidelines Nik, a seasoned analyst and writer for Metaverse Post, specializes in delivering the latest insights into the dynamic realm of technology, focusing particularly on AI/ML, XR, VR, on-chain analytics, and blockchain development. His engaging articles help a diverse readership stay informed and ahead of technological advancements. Holding a Master’s degree in Economics and Management, Nik possesses a strong understanding of business intricacies and their interplay with emerging technologies.
