The biggest Market Cap stable coin faced more than $10 billion value downfall and also faced downfall in interest because of fear among crypto investors.
USDT is the biggest Stablecoin asset by 24 hours Marketcap value, so this coin is standing at the first rank in this industry as a stable coin. Tether is the backend company behind this stable coin, which is a subsidiary of the Bitfinex crypto exchange. USDT is under high use cases among the investors because of its first-mover advantage in this industry.
In the last two week, the crypto industry saw Terra’ UST stable coin downfall and that resulted in huge fear among the Defi Protocols users, where stablecoins plays an important role in trade purposes.
According to the available data at CoinGecko, the market of USDT capitalization was at US$73.35 billion at the time of publishing, following an all-time high of US$84.15 billion on May 12. This was a bad outcome for USDT.
No doubt that USDT is a widely used stable coin in this industry but still it also faced a downfall in its pegged value by 5%.
Infactly, this issue for USDT was not strange for a few crypto pundits because already USDT issuer Tether was under the question, because of its commercial papers.
Last week, Tether published its reserved fund’s report behind its stable coin and also confirmed that the company reduced 17% of commercial papers every quarter this year.
Call for Stablecoins regulation
For example USDC, a stable coin backed by Circle firm, and BUSD, a stable coin backed by Binance exchange, grabbed huge interest among the Defi users.
While on the other hand, USDT, DEI-like stable coins faced a significant downfall in value.
The majority of the crypto proponents stated that this situation should be a perfect reason for the regulatory bodies to impose a strict framework on stablecoins issuer companies.