Tether (USDT) Faces Slight Depeg Amid EU Delisting FUD
The post Tether (USDT) Faces Slight Depeg Amid EU Delisting FUD appeared on BitcoinEthereumNews.com.
Tether (USDT) is facing issues on several fronts. The stablecoin giant will exit Europe in a few days due to its regulatory hurdles. Amid this challenge, USDT has witnessed volatility, leading to its depegging from its $1 value. This development has generated concerns and reactions from stakeholders in the cryptocurrency space. Tether’s Depeg Sparks Investor Concerns Current market data shows that USDT is experiencing mild fluctuations in price. This development has persisted for several hours, increasing the Fear, Uncertainty, and Doubt (FUD) around the asset. USDT was exchanging hands at $0.9983 as of this writing, representing a 0.10% decrease. This shifts it from its 1:1 pegging with the U.S. dollar. – Advertisement – Besides the de-pegging, the widely used stablecoin has slowed down in general. As highlighted by Ali Martinez, a renowned on-chain analyst, in a post on X, over the past 10 days, Tether has slowed down in adding liquidity to the market. That is, the circulating supply of USDT has decreased considerably. Martinez says the reduction is worth around $1.3 billion. The implication is that users have increased their USDT to fiat currency redemption rate. Usually, Tether removes tokens that have been redeemed from circulation. Concerns over Tether’s future might have triggered this redemption boost as it exits the European market. However, in a post on X, analyst Anton Golub dismissed the concerns, maintaining that Tether does not need Europe to thrive. According to Golub, Tether and Circle are the two leaders in the $203 billion global stablecoin market, having 80% control. He noted that the $252 million Euro-backed market will not significantly impact Tether. How Will Europe’s Exit Impact USDT? Golub sees the Markets in Crypto Assets (MiCA) regulations as unprofitable for stablecoin issuers like Tether. The 4x founder explained that MiCA requires 60% of reserves to…
Filed under: News - @ December 29, 2024 1:11 am