Millions worth of tether (USDT) stablecoins were observed being sold off on popular Uniswap and Curve pools on Thursday morning, causing concern among traders. The significant movement of USDT balances on Curve's 3pool, a stablecoin swapping pool consisting of USDT, USDC, and DAI, reached over 72% early on Thursday. This suggests that traders had exchanged tens of millions of USDT in favor of stablecoins like USD coin (USDC) and dai (DAI).
The imbalance in the USDT holdings indicates a growing preference for DAI and USDC over tether. Similar shifts in sentiment were observed during Terra's implosion last May and the collapse of crypto exchange FTX in November. These events highlighted the trend of traders seeking alternative stablecoin options in times of market volatility.
Paolo Arduino, Tether's Chief Technology Officer (CTO), suggested in a tweet that some traders might be capitalizing on the current sentiment prevailing in the broader crypto markets, which have experienced a recent decline. Arduino stated, "Markets are edgy these days, so it's easy for attackers to capitalize on this general sentiment. But at Tether, we're ready as always. Let them come. We're ready to redeem any amount".
The selling of USDT on Curve and Uniswap pools has raised eyebrows among traders, highlighting the potential impact on the stability of the cryptocurrency market. As the situation unfolds, market participants will closely monitor the behavior of stablecoin investors and the broader implications for the market.
Reference:
URL: https://www.coindesk.com/markets/2023/06/15/usdt-selling-on-curve-uniswap-spooks-traders-amid-bitcoin-drop/
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