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Author: Admin | 2025-04-29
And decentralized exchanges. USDT is listed on almost every cryptocurrency exchange, and over 3000 USDT pairs are live on tracked exchanges, providing investors with an easy way to trade between USD and other cryptocurrencies.USDT Price StabilityUSDT’s dollar peg is tightly maintained and hardly strays away from the $0.99-$1.01 range. However, following UST’s collapse, it slipped to as low as $0.95 on May 12, 2022, on some crypto exchanges.USDT ReservesThe reserve held by Tether is at the core of USDT’s functionality. It controls the stablecoin issuance process and is an index of USDT’s fiat backing. Cash or cash equivalents committed to USDT issuance are held in the Tether reserves and USDT redemptions are also paid out from these reserves.Based on the latest reserves breakdown from Tether, just under 80% of its reserves is in cash, cash equivalents, and other short-term deposits and commercial papers, with over 99% of these having a duration of 0-90 days.USD Coin (USDC)USDC is issued and managed by Circle and U.S.-based cryptocurrency exchange Coinbase. Launched in 2018, USDC has since issued over $50 billion worth of U.S. dollar-pegged stablecoin. About half of this figure was issued between July 2021 and August 2022. USDC’s mode of operation is very similar to USDT. The biggest difference lies in their reserve’s compositions. Circle pay and Coinbase accept only cash and short-term U.S. treasuries for USDC issuance. USDC stablecoin’s cycle is similar to that described earlier for USDT.USDC Volume and Market CapitalizationUSDC control a market capitalization of over $51 billion at the time of this writing. It is the second largest stablecoin and the fourth largest cryptocurrency, only behind USDT in both instances. Over $4 billion worth of USDC is traded on cryptocurrency exchanges daily.USDC Price StabilityPre-March 2023, USDC's dollar pegging didn't have any major slips, even in the face of the UST collapse. However, on 11 March 2023, USDC broke the dollar peg, sinking as low as $0.88, due to exposure to failed Silicon Valley Bank (SVB), as $3.3 billion of its $40 billion of USDC reserves were managed by SVB. Based on statements from Circle, the company has announced
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