Tether (USDT) market cap decreased by nearly $9 billion after Terra's UST collapse. As a result of the collapse of Terra's UST stablecoin, the market saw a dramatic sell-off last week, with USDT falling as low as $0.95. This decline dragged the market, which was already dominated by fear, into a panic mood.
According to popular social media account CryptoWhale, the “explosion” of Tether (USDT) will happen very soon. This comment actually came from one of Tether's biggest critics. USDT's market cap has dropped to levels seen in December 2021. Although the ranking of USDT in this area has not changed, the figures can be considered as an alarming warning for investors.
The supply of Tether on exchanges has increased by more than two billion in recent days, and there has been a sharp increase especially in stablecoins returning to the markets since the beginning of May.
While most of this occurred when Tether was briefly fixed, the trend continued and Tether supply on exchanges reached new highs. Investors are said to be taking their USDT to exchanges to buy from the bottom. Glassnode stated the following on the subject:
"If we look at the USDT supply, we can indeed see over $7,485B of USDT being redeemed within a week. The total supply of USDT has dropped from $81,237B of ATH to $75.75B."
According to Glassnode's research, crypto investors may be reconsidering their preferred stablecoin.
“Given the dominant growth of USDC over the past 2 years, this may be an indication of the market preference shifting from USDT to USDC as the stablecoin of choice.”
The price of Tether (USDT) dropped to $0.97 last week and then returned to $1 again. As data shared by Santiment indicates, leading whale addresses sold 710 million dollars' worth of Tether at that time. This big sale is considered the largest one-day USDT sale at whale addresses. Santiment has not shared any data about the network these addresses are connected to.