Tether USDT Swings on Volatile Price Movements in Crypto Market

Tether’s USDt price slides to $0.999927 with a 24-hour trading volume of $27,421,704,478. Tether USDt is down 0.01% in the last 24 hours. The current CoinMarketCap ranking is #3, with a live market cap of $96,029,705,804. It has a circulating supply of 96,036,749,592 USDT coins.

USDT launched in October 2014, and is the longest-standing stablecoin, with the largest volume in circulation, S&P Ratings said in an update.  USDT has maintained a notable level of price stability, especially in recent years and over the past 12 months.

During the period of significant market volatility following the Terra Luna failure in May 2022 and FTX collapse in November of the same year, USDT’s price exhibited minor fluctuations but subsequently regained its usual stability.

In March 2023, during the Silicon Valley Bank (SVB) failure, USDT maintained its price stability relative to the U.S. dollar.

During that period, some other stablecoins deviated from their peg either as a direct impact of having their reserves at SVB or indirectly from the general market sentiment. S&P Ratings said this situation may have increased the demand for USDT as market participants sought alternative stablecoins. 

USDT’s market capitalization has recovered since March 2023. It reached $87 billion in November 2023, after declining to a low of $65 billion in December 2022 from $83 billion in April 2022 following the Terra Luna crash and FTX collapse.

USDT’s dominance has also increased, with its market capitalization nearly 3.5x that of the next largest stablecoin USDC, compared to 1.7x before the Terra Luna failure. Based on the most recent report, attested by BDO Italia, as of Sept. 30, 2023, reserves of $86.4 billion backed $83.2 billion of USDT in circulation. Selloffs Provoke Spike in Nigerian Treasury Bills Yield

The overall collateralization ratio stood at 104%, consisting of short-term U.S. treasury bills with an average tenor of less than 90 days (68%), U.S. treasury-bill-backed overnight reverse repurchase agreements (repos; 10%), other reverse repos and non-U.S. treasury bills (1%), money market funds (10%), cash and bank deposits (less than 0.5%), and a combination of riskier assets (15%). 

A large share of USDT’s reserves comprises short-term U.S. treasury bills and other U.S. dollar cash equivalents, according to S&P Ratings. There is also significant exposure to higher-risk assets with limited disclosure. Such assets could be subject to credit, market, interest rate, or foreign currency risks.