Tether (USDT), the world’s largest stablecoin, saw its total supply fall sharply this month as more investors traded the token in for dollars.
The trend comes in the wake of one of the worst crypto crashes seen in recent times. Concerns over Terra’s UST had also seen USDT briefly de-peg to $0.95– its lowest level in five years.
The token appears to be under extreme selling pressure from the ongoing market crash, with its total circulating supply plummeting by about $9 billion to $74 billion since the beginning of the month.
USDT has also spent nearly 10 days trading below its $1 peg, according to data from Coinmarketcap.com. It is currently trading at $0.9989.
Concerns grow over USDT reserves
With UST’s crash bringing fresh scrutiny to stablecoins, calls are growing for Bitfinex, which operates USDT, to provide more details over its reserves backing the token.
