Tether held its fort, however, even trading at a premium in the following days. This came despite a long-held notion among some market participants about the token’s opaque asset backing and concerns about parent company Tether Global.
Data further shows at least $5 billion of inflows into Tether in the past weeks, bringing its market capitalization to over $77 billion as of Wednesday.
Part of that could likely be due to its supposedly low exposure to the U.S. banking system, some say.
“Tether has no exposure to SVB as its popularity lies more in the Asian region, meaning USDT doesn't rely on dollars being held in American banks, making it one of the safest stablecoins to pivot to currently,” said François Cluzeau, head of trading at Flowdesk, in a message to CoinDesk.
“We have seen a lot of USDC and DAI being traded for USDT, which has kept USDT liquid,” Cluzeau wrote.
The systematic risks of USDC affected dai stablecoins, which further strengthens tether’s thesis of holding a variety of assets to back its stablecoins, said Mitya Argunov, chief product officer at P2P.org.
"Tether’s performance during the crisis is largely due to its lack of direct exposure to SVB – it just didn’t have deposits there. Other major stablecoins like DAI were also indirectly exposed and de-pegged because they are actually largely collateralised by USDC,” Argunov said.
img
clickable img
art19 html:
Art19 Podcast embed:
jw playlist
Still a Need for Caution
Meanwhile, some developers continue to remain cautious for the long term.
“Looking at Tether's history, it has experienced FUD and redemption issues in the past and has been stable amidst current market turmoil,” said Danny Chong, co-founder of Tranchess, in a note to CoinDesk.
“Tether's ability to maintain stability amidst recent challenges suggests that it may have a chance at long-term success,” Chong said, adding that further stress tests would show if it remained “resilient in the long run.”
USDC also demonstrated the effectiveness and resilience of its hedging strategy through collaboration with its banking partners as it recovered its peg swiftly the following week, Chong said.
Demand for stablecoins is undented, however.
“The swiftness of Circle’s USDC recovering its peg after their announcement of a recovery plan is further confirmation of how the market values the potential for stablecoin businesses,” Chong noted.
social url - Twitter
jwplayer
Still a Need for Caution
Meanwhile, some developers continue to remain cautious for the long term.
“Looking at Tether's history, it has experienced FUD and redemption issues in the past and has been stable amidst current market turmoil,” said Danny Chong, co-founder of Tranchess, in a note to CoinDesk.
“Tether's ability to maintain stability amidst recent challenges suggests that it may have a chance at long-term success,” Chong said, adding that further stress tests would show if it remained “resilient in the long run.”
USDC also demonstrated the effectiveness and resilience of its hedging strategy through collaboration with its banking partners as it recovered its peg swiftly the following week, Chong said.
Demand for stablecoins is undented, however.
“The swiftness of Circle’s USDC recovering its peg after their announcement of a recovery plan is further confirmation of how the market values the potential for stablecoin businesses,” Chong noted.
embeddable chart
block quote
pull quote
Nibh mauris cursus mattis molestie a iaculis at. Risus viverra adipiscing at in tellus. Purus sit amet volutpat consequat mauris nunc. Curabitur gravida arcu ac tortor dignissim convallis aenean et tortor. Pharetra vel turpis nunc eget. Sed egestas egestas fringilla phasellus faucibus scelerisque eleifend donec pretium. Amet risus nullam eget felis eget nunc lobortis. Lectus vestibulum mattis ullamcorper velit sed ullamcorper morbi tincidunt. Placerat in egestas erat imperdiet sed.
Etiam erat velit scelerisque in. Eget mi proin sed libero enim. Eu non diam phasellus vestibulum lorem sed risus ultricies. Venenatis lectus magna fringilla urna porttitor rhoncus dolor purus non. Malesuada fames ac turpis egestas sed.
Curabitur gravida arcu ac tortor dignissim convallis aenean et tortor. Pharetra vel turpis nunc eget. Sed egestas egestas fringilla phasellus faucibus scelerisque eleifend donec pretium. Amet risus nullam eget felis eget nunc lobortis. Lectus vestibulum mattis ullamcorper velit sed ullamcorper morbi tincidunt. Placerat in egestas erat imperdiet sed.
table
test | |||
|---|---|---|---|
1 | test | ||
2 | test | ||
3 | test | ||
4 |
The often-controversial tether (USDT) stablecoins emerged as the best bet for traders looking for a stable haven earlier this month following a series of banking troubles in the U.S.
The USD coin (USDC) fell under 90 cents on March 11 after the collapse of Silicon Valley Bank (SVB) revealed some of the industry’s major players had exposure to the bank.
These players included U.S.-based stablecoin issuer Circle, which held a part of its USDC stablecoin’s cash reserves at Silicon Valley Bank as of Jan. 17, according to the firm's latest attestation.
Link list
numbered link list
non-numbered link list
bulleted list
- this is a test item 1
- this is a test item 2
- this is a test item 3
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Aliquet porttitor lacus luctus accumsan tortor posuere ac ut. In vitae turpis massa sed elementum tempus egestas sed. Fermentum iaculis eu non diam phasellus vestibulum lorem sed risus. Congue eu consequat ac felis donec et odio. Malesuada proin libero nunc consequat interdum varius sit amet. Lectus mauris ultrices eros in cursus turpis. Non enim praesent elementum facilisis leo vel fringilla. Congue eu consequat ac felis donec et odio pellentesque. Feugiat nibh sed pulvinar proin. Amet nisl purus in mollis nunc. Velit ut tortor pretium viverra suspendisse potenti nullam. Amet cursus sit amet dictum sit amet justo. Massa id neque aliquam vestibulum morbi blandit cursus risus at. Iaculis urna id volutpat lacus laoreet non curabitur gravida. Nibh venenatis cras sed felis eget velit aliquet. Non blandit massa enim nec dui nunc mattis enim ut. Molestie a iaculis at erat pellentesque adipiscing commodo.
Purus faucibus ornare suspendisse sed. Risus nullam eget felis eget. Libero volutpat sed cras ornare arcu dui vivamus arcu. Nulla pharetra diam sit amet. Turpis massa sed elementum tempus. Viverra suspendisse potenti nullam ac tortor vitae purus. Non sodales neque sodales ut etiam sit amet nisl purus. Pulvinar elementum integer enim neque volutpat ac. Gravida in fermentum et sollicitudin ac orci phasellus egestas. Interdum varius sit amet mattis. Cras ornare arcu dui vivamus arcu felis bibendum ut tristique.
Arcu odio ut sem nulla pharetra diam. Turpis egestas sed tempus urna et pharetra pharetra massa. Tristique magna sit amet purus. Cursus mattis molestie a iaculis at. Quam quisque id diam vel quam elementum pulvinar. Aliquam sem fringilla ut morbi tincidunt augue interdum. Sagittis id consectetur purus ut faucibus pulvinar elementum integer. Aliquam etiam erat velit scelerisque in dictum non consectetur a. Id ornare arcu odio ut sem. Mauris pellentesque pulvinar pellentesque habitant. In nibh mauris cursus mattis molestie a iaculis. Cursus eget nunc scelerisque viverra mauris in aliquam sem.
numbered list
- this is a test item 1
- this is a test item 2
- this is a test item 3