The recent encouraging Bitcoin (BTC) rally once again came with stern warnings concerning the influence of Tether (USDT), the leading stablecoin. Unprecedented trading activity above $45 billion’s equivalent and heavy selling pressures led to a breakdown of the USDT dollar peg, falling as low as $0.98.
While this breakdown is not catastrophic, it is an indicator of a possible scenario, where USDT unravels to a much lower level. So far, the loss of trust has not materialized as expected, but selling pressures certainly affect USDT.
During last week’s sell-off, each USDT coin went through the trading ecosystem more than 10 times in 24 hours. This turnover happens a...