USDT has failed again, who is FUD?

Today, the crypto market fell sharply.

In the early morning, with the end of the interest rate meeting, BTC fell, once falling below $25,000, a three-month low.

As a "reserved program" in the bear market, the stability of USDT; has been questioned again.

0xScope;The monitored data shows that in the past;24;hours;a total of;99 million;USDT;sold in the;Curve;3;pool;, with a net outflow of;64.4 million;USD. In the past; 72; hours, there were; 205; million; USDT; sold in; 3; pool;, with a net outflow of; 130; million US dollars.

Curve;data show that;3;pool;has been seriously tilted, among which;USDT;accounts for up to;75%;.

Although the "USDT" has not yet undergone a serious decoupling, the panicked market sentiment still has a negative impact on the "USDT". **With the "FUD" and the intensification of capital flight, USDT; may face more pressure. **

At present, the USDT; to; USD exchange rate is around; 0.997;, although it is not considered to be unanchored according to the past history, a large number of funds have escaped. Blockworks;Research;senior analyst;Dan;Smith; further warned of the risk of further declines in the future, **The current sell-off of this scale may be regarded as a harbinger of a more significant event. **

If the price of USDT drops to 0.9995 USDC, the available liquidity in the USDT/USDC pool on Uniswap V2 will decrease by approximately 83%. More volume will then flood into the rapidly dwindling ;3;pool, triggering further sell-offs and price drops.

USDT recovers rapidly

Although on the emotional side, currently; USDT; seems to be "burying hidden worries". But judging from the data, USDT; not only has not been abandoned, but has recovered extremely quickly.

Coingecko; data show that the current; USDT; market value; 833; billion US dollars. And its market value has experienced a rapid rise in recent months. Since entering 2023, the share of USDT has been increasing, and the current market value has increased by about 15 billion US dollars compared with the beginning of the year.

Observation; USDT's market share in stablecoins is even more obvious. Currently; USDT; market share is about; 66%; and has continued to rise for nearly half a year.

In the early years, USDT;'s dominance was extremely strong, and with the rise of "USDC" and "BUSD", USDT;'s dominance continued to decline, and the gap between USDC; and; USDT; gradually narrowed. However, with the advent of the regulatory storm and the US banking crisis, USDT; has grown rapidly again this year.

Will such continuous growth make "USDT" face new problems? We have no way of knowing. However, the tilt of the "Curve" has shown that the market's trust in the "USDT" is temporarily declining.

There are mixed responses from all parties, Tether; appease the market sentiment

Facing the current poor liquidity performance of USDT, Tether; CTO; Paolo; Ardoino; made an optimistic statement. "Markets are volatile these days, so it's easy for attackers to take advantage of the prevailing sentiment. ;But; Tether; ready as always. Let them come, we're ready to redeem any amount," he tweeted. For "Tether", USDT's run crisis has happened more than once, and now this price fluctuation is not as serious for "Tether" as it used to be. Tether; the official Twitter did not make a special statement or voice on the current market situation.

For some big investors and giant whales, the volatility of USDT also brings them arbitrage opportunities. The data monitored by Lookonchain shows that the giant whale address starting with 0xd275 borrowed 5,000,000,000 USDC from Aave after USDT was slightly decoupled, and began to purchase USDT for arbitrage.

At present, under the continuous blow of the regulatory storm in the United States and the sharp decline in the market, every negative news, rumor, and FUD in the encryption world will be magnified by investors in an extraordinary way. This price fluctuation of USDT; seems particularly "untimely".

Although "Tether" has not yet had any definite problems, once the stable currency runs out of crisis, can the encryption world withstand another systemic collapse crisis? This will become a lingering question in every currency holder's mind for some time to come.