{"id":40003,"date":"2022-11-11T02:35:31","date_gmt":"2022-11-11T06:35:31","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=40003"},"modified":"2022-11-11T02:35:34","modified_gmt":"2022-11-11T06:35:34","slug":"market-volatility-and-redemptions-destabilize-major-stablecoins","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/market-volatility-and-redemptions-destabilize-major-stablecoins\/","title":{"rendered":"Market volatility and redemptions destabilize major stablecoins"},"content":{"rendered":"\n
Almost all significant stablecoins lost their dollar pegs after the FTX scandal<\/a>, but most have gained them again as markets have stabilized.<\/h5>\n\n\n\n
\"Market
Market volatility and redemptions destabilize major stablecoins<\/figcaption><\/figure>\n\n\n\n

Stablecoins have been affected by this week's significant market volatility, which was brought on by the failure of the FTX exchange<\/a>, with many of them momentarily de-pegging.<\/p>\n\n\n\n

The fall in cryptocurrency prices this week is not the only effect of the crypto infection brought on by FTX.<\/p>\n\n\n\n

Julio Moreno, a senior analyst at CryptoQuant, claims that this week has seen some degree of peg volatility in almost all popular stablecoins.<\/p>\n\n\n\n

Tether USDT, the most popular stablecoin\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> in the world, briefly dropped to $0.97 on November 10 as redemptions reached $600 million over the previous two days, he pointed out.<\/p>\n\n\n\n

As of the time of writing, USDT is still trading at $0.998, according to CoinGecko, which is slightly below its peg.<\/p>\n\n\n\n

Evidence that FTX and sibling company Alameda Research were attempting to short USDT was cited in the Tether de-pegging event.<\/p>\n\n\n\n

\n

Crypto market volatility has gone up tremendously in the last few days amid the FTT\/FTX downfall.

How are stablecoins doing in this environment? \ud83e\uddf5

Tether's price shortly declined to $0.97 today as redemptions surpass $600M in the last 2 days. pic.twitter.com\/52eAtBs3NP<\/use><\/svg><\/span><\/a><\/p>— Julio Moreno (@jjcmoreno) November 10, 2022<\/use><\/svg><\/span><\/a><\/blockquote>

Circle's USDC has also seen volatility, with redemptions exceeding $1 billion. Yesterday, the stablecoin<\/a> temporarily dropped to $0.977 before quickly regaining its peg, according to CoinGecko.<\/p>\n\n\n\n

According to Moreno, the amount of TrueUSD redemptions barely exceeded $1 million, but it didn't stop the de-pegging to $0.98 yesterday. He pointed out that after redemptions passed $100 million, the Paxos USDP stablecoin fell as low as $0.96.<\/p>\n\n\n\n

BUSD, the Binance stablecoin, had some volatility on the Gemini market and briefly fell to $0.98.<\/p>\n\n\n\n

Tron's algorithmic USDD stablecoin, which is presently trading at $0.973 per coin, is still well off its peg. At its most volatile yesterday, it dropped as low as $0.952.<\/p>\n\n\n\n

Since the start of the week, Tron's TRX token<\/a>, which is used to redeem USDD, has fallen 12%, raising questions about the collateral supporting the stablecoin. Additionally, Justin Sun claimed that FTX and Alameda had shorted USDD.<\/p>\n\n\n\n

On Nov. 10, a large number of stablecoins left the FTX market, which coincided with the de-pegging incidents.<\/p>\n\n\n\n

\n

FTX Exchange (0x2faf) has resumed transfer out 1 hour ago.

A total of 99 transfers were made, with $4,433,330 stablecoins.

Including:
28 transfers of $USDC<\/use><\/svg><\/span><\/a>, 3,985,236 $USDC<\/use><\/svg><\/span><\/a> in total.
22 transfers of $USDT<\/use><\/svg><\/span><\/a>, 325,569 $USDT<\/use><\/svg><\/span><\/a> in total.
3 transfers of $BUSD<\/use><\/svg><\/span><\/a>,122,526 $BUSD<\/use><\/svg><\/span><\/a> in total. pic.twitter.com\/CdsSG1aWc9<\/use><\/svg><\/span><\/a><\/p>— Lookonchain (@lookonchain) November 10, 2022<\/use><\/svg><\/span><\/a><\/blockquote>

The majority of significant stablecoins, including USDC, BUSD, USDP, GUSD, and TUSD, had, as of the time of writing, reverted to their dollar peg, allowing market participants who were concerned about a repeat of the Terra-type stablecoin<\/a> crash to temporarily rest easy.<\/p>\n\n\n\n

With a 5% increase in total capitalization, which was back above $900 billion after yesterday's collapse, the markets have only partially recovered.<\/p>\n","protected":false},"excerpt":{"rendered":"

Almost all significant stablecoins lost their dollar pegs after the FTX scandal, but most have gained them again as markets have stabilized. Stablecoins have been affected by this week’s significant market volatility, which was brought on by the failure of the FTX exchange, with many of them momentarily de-pegging. The fall in cryptocurrency prices this […]<\/p>\n","protected":false},"author":38,"featured_media":40007,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[25],"tags":[778,926,1103,1106],"class_list":["post-40003","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-analysis","tag-ftx","tag-stablecoins","tag-tether","tag-usdc"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/11\/4W4MJQc.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/40003","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=40003"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/40003\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/40007"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=40003"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=40003"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=40003"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}