Tether’s Market Cap Has Dropped by More than $1 Billion in October

tether withdrawal usdt cryptocurrency

Tether (USDT), the embattled cryptocurrency token whose value is purportedly backed by US dollars, continues to see massive outflows as it struggles to maintain USD parity amid rising competition from other stablecoins launched by some of the crypto industry’s biggest names.

Blockchain data from Omni Explorer shows that yesterday, on Oct. 30, Tether Limited redeemed another 100 million units of USDT, reducing the outstanding supply to about 1.8 billion.

tether cryptocurrency outflow
Source: Omni Explorer

Since the beginning of October, Tether has redeemed a staggering 990 million tokens, more than double the 452 million that were in circulation on this date last year. Coupled with the fact that the USDT price is currently trading at a discount to its supposed $1.00 valuation, tether’s market cap has dropped by more than $1 billion this month and more than 37 percent from its all-time high.

tether cryptocurrency supply
Source: CoinMarketCap

On Wednesday, tether, long the eighth-largest cryptocurrency by market cap, slid behind cardano (ADA) to ninth, weighed down by its price once again dropping below $0.99 after briefly touching $1.00 earlier in the week. USDT now maintains less than a $100 million edge on 10th-ranked monero (XMR).

Coinbase 2
tether usdt
Source: CoinMarketCap

Curiously, Kraken’s USDT/USD market, which allows traders to exchange tokens fiat USD, is actually, as of the time of writing, trading at a slight premium to tether’s global average price. The trading pair, which has $15 million in volume over the past 24 hours, had in recent days consistently priced USDT several percentage points below its global average.

Kraken usdt usd price
USDT/USD | Kraken | Source: TradingView

Meanwhile, tether’s competitors — particularly TrueUSD (TUSD), USD Coin (USDC), and Paxos Standard (PAX) — continue to see rapid growth in the wake of USDT’s lost dollar peg. Collectively, the market caps of these three stablecoins now exceed $400 million, and while that does not completely account for the nearly $1 billion in tether outflows, it does suggest that traders view these “regulated” tokens as more trustworthy than USDT, whose issuer has been criticized for its opaque operations, banking relationships, and association with cryptocurrency exchange Bitfinex.

Featured Image from Shutterstock

Follow us on Telegram or subscribe to our newsletter here.Advertisement

Tether’s Market Cap Has Dropped by More than $1 Billion in October 1
About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews



bitcoin
Bitcoin (BTC) $ 42,430.00
ethereum
Ethereum (ETH) $ 2,982.06
tether
Tether (USDT) $ 0.999643
cardano
Cardano (ADA) $ 2.07
binance-coin
Binance Coin (BNB) $ 360.96
xrp
XRP (XRP) $ 0.935843
solana
Solana (SOL) $ 135.04
usd-coin
USD Coin (USDC) $ 0.9992
polkadot
Polkadot (DOT) $ 28.30
dogecoin
Dogecoin (DOGE) $ 0.20745
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 42,430.00
ethereumEthereum (ETH)
$ 2,982.06
tetherTether (USDT)
$ 0.999643
bitcoin-cashBitcoin Cash (BCH)
$ 534.65
litecoinLitecoin (LTC)
$ 157.65
bitcoinBitcoin (BTC)
36.184,86
ethereumEthereum (ETH)
2.543,14
tetherTether (USDT)
0,852509
bitcoin-cashBitcoin Cash (BCH)
455,96
litecoinLitecoin (LTC)
134,45
bitcoinBitcoin (BTC)
30,879.54
ethereumEthereum (ETH)
2,170.27
tetherTether (USDT)
0.727516
bitcoin-cashBitcoin Cash (BCH)
389.11
litecoinLitecoin (LTC)
114.73

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021
Cryptocurrency Exchanges
Cryptocurrency Exchanges and the Plague of Scams and Bans
June 29, 2021
What Role Do Cryptocurrencies Play In The Era Of Ransomware Attacks?
June 9, 2021

Blockchain/Cryptocurrency Questions and Answers

Beginner’s Guide to Investing in Cryptocurrency
August 9, 2021
Short-Sell Cryptocurrency
How to Short-Sell Cryptocurrency: A Brief Overview
July 17, 2021
Klaytn
What Is Klaytn (KLAY) And How Does It Work?
July 16, 2021
Cryptocurrencies
Our Crypto Roundup Interview Asks- Do Cryptocurrencies Have a Future?
July 15, 2021
Solana
What Is Solana (SOL) And How Does It Work?
June 26, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin42,506 0.73 % 7.10 % 5.84 %
Ethereum2,983.5 0.64 % 7.18 % 9.62 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Cardano2.070 1.06 % 5.29 % 14.24 %
Binance Coin360.80 1.14 % 8.18 % 10.00 %
XRP0.9342 1.17 % 5.52 % 12.58 %
Solana135.46 1.44 % 6.86 % 19.98 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
USD Coin1.000 0.08 % 0.07 % 0.31 %
Dogecoin0.2073 0.49 % 7.51 % 12.57 %

bitcoin
Bitcoin (BTC) $ 42,430.00
ethereum
Ethereum (ETH) $ 2,982.06
tether
Tether (USDT) $ 0.999643
cardano
Cardano (ADA) $ 2.07
binance-coin
Binance Coin (BNB) $ 360.96
xrp
XRP (XRP) $ 0.935843
solana
Solana (SOL) $ 135.04
usd-coin
USD Coin (USDC) $ 0.9992
polkadot
Polkadot (DOT) $ 28.30
dogecoin
Dogecoin (DOGE) $ 0.20745