Stablecoins are shaky as USDT shows signs of depeg
As the crypto market’s volatility continues, the total stablecoin market capitalization declined by 0.25% over the past 24 hours, with an average price change of 0.71%.
The downward movement comes after the largest stablecoin by market cap, USDT, shows signs of depeg. USDT’s price fell by 0.23% over the past 24 hours and plunged to a local bottom of $0.997 after the asset lost roughly $270 million of its market capitalization.
However, data from Binance shows that USDT is back to the $1 mark, while Trading View’s data suggests otherwise — displaying a price of $0.9974 at the time of writing.
On the other hand, USDC’s market cap has risen by over $40 million since USDT lost its peg to the US dollar. USDC’s 24-hour trading volume has also risen by 60% over the past day.
DAI and BUSD have also witnessed notable drops of roughly $80 million and $90 million, respectively. Data provided by crypto.news shows that DAI’s trading volume has exploded by 255% over the past 24 hours.
Furthermore, USDT depeg comes as its supply annual percentage rate (APR) on Aave protocol rose to almost 15% from 2.75% in less than 24 hours. According to data provided by the lending platform, variable and stable borrowing annual percentage yields (APY) have risen significantly.