The cryptocurrency market experienced a huge crisis in just 1 month.
LUNA on the Terra network and its stablecoin, UST, were suddenly removed from the market. The disappearance of UST, which has a market value of billions of dollars, and LUNA, which is seen as its collateral, actually had a black swan effect.
This effect has raised fears that all stablecoins may suffer a similar fate. Tether (USDT) was severely affected.
Big Change in Tether Supply
It is very controversial and known for not fully disclosing its reserves. Tether, affected by this crisis.
Many investors put selling pressure on Tether as it is not an algorithmic stablecoin, thinking that its value could also bottom out.
In the meantime, the Tether team constantly took important steps and made statements, and the pressure was only prevented in this way. Despite this, when we look at the market value of USDT, it is seen that there has been a significant shrinkage.
Looking at the total market value of USDT on May 11, it is seen that it is over $83 billion.
With the onset of the LUNA crisis, there was a serious shrinkage in the market value of USDT. Total as of now $10 billion USDTIt appears to have been deleted from the market. at one point for $0.95 Although the USDT value, which fell by as much as $20, scared investors, Tether took the situation under control.
Still, the fact that a structure like Tether has to limit the supply of 10 billion dollars to prevent this keeps the concerns about stablecoins alive.