1/ Many have raised concerns about USDT (Tether), but let's dive into the data to separate facts from FUD.
3/ The Curve 3-Pool, made up of DAI, USDC, and USDT, plays a crucial role in maintaining the stability of USDT. By offering a direct trading pair between USDT and other stablecoins like USDC and DAI, the pool allows for easy arbitrage opportunities, and eventually restoring the peg with time.
2/ USDT began losing its peg to the US dollar in the early hours of June 15, 2023 UTC. 8 hours later, USDT was seen trading at a 0.5% discount leaving many DeFi patrons to suspect market manipulation or irregularities.
4/ As you can see, the USDT in the pool has been gradually increasing since June 12, 2023. This means that as holders sold USDT into the pool and went above the optimal 33% pool share (1/3), USDT price dropped relative to DAI and USDC.
5/ On-chain transaction analysis reveals that the volume and frequency of USDT transactions align with market demand, especially in bearish times. There is no evidence of abnormal patterns suggesting market manipulation or irregularities.
6/ USDT's market capitalization and it's number of holders has consistently grown, reflecting its widespread adoption and trust in the market. Its stability is comparable to other leading stablecoins, reaffirming its position as a reliable choice.
7/ Trading volume provides further insights. USDT consistently records high trading volume across reputable exchanges, demonstrating its liquidity and market demand. No significant anomalies have been observed, indicating a healthy trading environment.
8/ Amidst FUD, it's crucial to assess sentiment objectively. While concerns exist, the overall sentiment towards USDT remains positive, backed by its wide usage and market acceptance.
9/ In conclusion, a thorough analysis of USDT with reliable data indicates that many of the FUD claims lack substantial evidence. USDT's stable market capitalization, trading volume, and price stability contribute to its credibility. It's only a matter of time before the peg is re-claimed.