Crypto analytics and insights firm Santiment has released three metrics TerraUSD (UST) revealed how other stablecoins reacted during and after its collapse.
“Stablecoins have been the hot topic in the crypto world for the past few weeks. Especially after the collapse of the UST and the temporary collapse of the USDT, it was often discussed that there were dozens of problems to be solved. In the last article we published, we shared the USDC accumulation of whales.”
The three published metrics revealed a significant trend in stablecoins following the TerraUSD (UST) collapse. As it will be remembered, after the UST algorithmic stablecoin of the Terra ecosystem lost its stable value, a panic sale was triggered and the algorithm’s attempt to balance the market by pressing more LUNA caused great chaos, resulting in both altcoins losing their value. Fear starting with UST other stablecoinIt also spread to .
Leading stablecoin Tether (USDT) also briefly lost its pegged value against the dollar last week, causing a lot of interest from buyers. It was found that there was a large uptake during this decline. Speaking on May 17, Tether Chief Technology Officer Paolo Ardoino said that the company converted approximately 7 billion USDT to USD within 48 hours. announced.
Tether also recently announced that it has reduced the amount of commercial paper in its $74 billion stablecoin backing reserve. Tether Holdings Ltd., as of March 31, had at least $82.4 billion in assets and $82.2 billion in liabilities related to the digital tokens it issued, according to an assurance from MHA Cayman in the Cayman Islands.
The three metrics contributed greatly to reviewing the stablecoin topography during and after the TerraUSD (UST) collapse.
Transactions
According to Santiment, a flow from USDT to USDC was observed with a decrease in the market value of Tether (USDT) followed by an increase in the market value of USDC, which is presumed to be due to the belief that USDC is safer. Tether remains the largest stablecoin by market cap at $73.19 billion, followed by USDC at $53.02 billion, according to CoinMarketCap data.
Network Growth
At the first sign of UST stabilization, retailers began converting any UST they could to USDT or USDC, the two largest stablecoins in the industry.
Supply Distribution
While network growth for USDT accelerated during the UST collapse, Santiment noted that the distribution of supply by several addresses indicates that many wallets may have stopped holding USDT altogether. The upside to this was on the USDC side.
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