The uncertainty around stablecoins had begun with the UST crash and inevitably spilled unto others such as USDT. This uncertainty has continued to linger weeks after the crash leading to investors moving out of stablecoins. The aftermath of the UST crash has left USDT as the most challenged stablecoin in the space and has seen billions redeemed in just a matter of weeks.
In the past two weeks, investors have pulled more than $10 billion out of USDT. This has seen the market cap of the digital asset fall to $75 billion over the course of two weeks. Most of this has been from fear arising from UST which had lost its peg and fallen to $0.06 where it is currently trading. As a result of this, a number of investors had lost billions of dollars over the last couple of weeks.
Related Reading | Another Stablecoin Takes A Bow Following UST Crash
The crash had drawn further regulatory scrutiny regarding stablecoins and their ability to not only maintain their peg but protect investors in the process. Do Kwon, founder of the Terra Network, has been at the center of this scrutiny as the South Korean government tries to figure out what went wrong.
USDT continues to be the subject of various challenges in the market. Initially, it succumbed to these challenges when its value fell to $0.95 losing its peg. It had recovered soon after. However, the damage was done as more than $1 billion had been withdrawn from USDT on Friday alone.
USDT loses $10 billion in two weeks | Source: Market Cap USDT on TradingView.com
Despite all of the challenges from recent times, most stablecoins have still managed to hold their ground. The biggest ones such as USDT, USDC, and BUSD are still doing quite well and are still favored among investors looking for cover from the extreme volatility of the crypto market.
As of the time of writing, stablecoins still feature heavily in the top 10 cryptocurrencies by market cap, clenching three out of 10 spots. USDT which has been the worst hit in the aftermath of the UST crash still maintains its position as the largest stablecoin in the market at $73.2 billion. This also makes it the third-largest cryptocurrency by market cap, falling behind only Bitcoin and Ethereum.
Related Reading | Do Kwon Warns Terra Community Not To Use LUNA Burn Address
USDC and BUSD are also maintaining their hold in their various positions. Circle’s USDC is the second-largest stablecoin and fourth-largest cryptocurrency by market cap at $53.2 billion. Binance USD is currently trending at $0.9995 which puts it at a market cap of $18.3 billion. This market cap puts it ahead of market favorites such as Cardano, Solana, and Dogecoin.
However, USDC is the only stablecoin out of the three that continues to maintain its $1 value. Both USDT and BUSD are still trading below the $1 mark, including DAI, a decentralized stablecoin.
Featured image from TODAY, chart from TradingView.com
China's central bank announced a number of stimulus measures this week, creating liquidity conditions that analysts believe will help boost bitcoin prices.
AlexKi Young Ju, founder of CryptoQuant, said that Chinese mining pools control 55% of the Bitcoin network hash rate, but the cryptocurrency media believes that the claim of dominance is a key misunderstanding.
MiyukiThe US has acted against two Russian individuals and two crypto exchanges suspected of illicit financing. Named in the investigation are crypto exchanges PM2BTC and Cryptex, along with Sergey Ivanov, Timur Shakhmametov. Authorities are offering up to $10 million for information leading to their arrest.
CatherineApple and Meta have chosen not to join the EU's AI safety pact, despite over 100 companies, including major players like Google and Microsoft, signing it. This decision highlights ongoing regulatory tensions and could impact their ability to launch new AI products in Europe.
WeatherlyBinance founder CZ will be released today, 27 September, two days ahead of schedule, due to his release date falling on a weekend. Will this trigger a rise in BNB’s price?
KikyoDanila Yakovlev, a 19-year-old from Russia, was sentenced to 15 years in prison for donating $54 to a pro-Ukrainian paramilitary group. His small contribution was viewed as treason and terrorism financing under Russia's strict laws.
AnaisSwan Bitcoin is suing ex-staff for allegedly stealing proprietary code to start their own mining venture in a scheme called "rain and hellfire." These ex-executives persuaded Tether to sever ties with Swan, increasing competition in the cryptocurrency market. Swan is now seeking legal action to recover stolen assets and confidential information.
CatherineThe 2024 Miss Korea Pageant faced backlash after asking contestants a controversial question about deepfake technology, which many found inappropriate given the current concerns about its misuse. Critics argue that the organizers missed an opportunity to engage in a meaningful discussion about the impact of AI on beauty standards and human dignity, especially in light of rising deepfake-related crimes in South Korea.
AnaisOn Saturday (September 28), financial website TheStreet reported that as the crypto industry prepares for the 2024 election, there is a growing view that former President Donald Trump’s victory could be good for Bitcoin and the broader digital asset sector.
AlexMark Zuckerberg's venture into the metaverse faced challenges, but it's now paying off. Meta's value has soared to over $1.4 trillion, his net worth has surged to $201 billion, making him the fourth richest person. Could the expansion into the metaverse and AI be driving this success?
Catherine