- Data from Curve shows that investors are dumping USDT for DAI and USDC.
- USDT’s 3pool contribution is $650 million. The remaining 35% is split evenly between USDC and DAI.
- Paolo Ardoino, Tether’s CTO, said on June 27 that he’s open to hedge funds shorting Tether (USDT).
According to data provided by Curve, the most prominent DeFi stablecoin exchange, the main liquidity pool of the exchange is heavily weighted toward USDT. This suggests that investors are abandoning the currency in favor of trading it for other stablecoins, like USDC and DAI.
The value of USDT’s contribution to the 3pool on Curve is around $650 million. The remaining 35% of the pool is divided between the USDC and DAI in an equal manner. Since roughly two months ago, the price of USDT has been trading for a fraction of a dollar less than its dollar peg, and it is now more affordable than USDC and DAI.
In related news, even though the company has said many times that its reserves are fully backed, more and more people are shorting Tether.
The liquidity pool, which gives traders the ability to trade between the three most popular stablecoins, reveals that there is still an abundant supply of Tether, with the token comprising 65% of the total as of Friday.
Tether had a holding of 29% in Curve Finance’s 3pool of tokens prior to the de-pegging event for TerraUSD that took place on May 6. It reached an all-time high of 82% on May 12th, which caused the stablecoin to briefly detach from its link to the US dollar.
Meanwhile, on June 27th, the Chief Technology Officer of Tether, Paolo Ardoino, stated that he is open to attempts from some hedge funds to short Tether (USDT). He explained that these hedge funds attempted to achieve their goal by utilizing perpetual contracts, short-selling on spot markets, and creating imbalances in DeFi pools.