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USDT briefly loses its peg to the U.S. dollar as market selloff intensifies

Nigeria's has highest interest in Tether, the most popular stablecoin amid naira scarcity

The world’s largest and most controversial stablecoin, Tether (USDT), showed signs of stress as USDT/USD traded under $0.99 on major exchanges. With a massive scare in the market as a result of the depegging of UST, the programmable stablecoin of the Terra blockchain, Tether and Bitfinex CTO, Paulo Ardoino took to Twitter to assure USDT holders, explaining that over 300 million USDT tokens had been redeemed at their $1 peg over the past 24 hours.

The cryptocurrency market continues to suffer major losses following the depegging of Terra (LUNA) ecosystem’s stablecoin UST, causing discrepancies between stablecoin pegs and the value of Bitcoin (BTC). Because of this, Bitcoin has traded as low as $26,350.49, as panic selling becomes the order of the day.

Although USDT snapped to 97 cents in Asian hours, losing its parity with U.S. dollars at writing time, it slumped to as low as 96 cents on Coinbase. Ardoino stressed that USDT has maintained its stability through multiple black swan events and highly volatile market conditions and has never refused redemptions.

What you should know

Stablecoins have long been a source of stability for cryptocurrency markets around the world but 2022’s bumpy ride coupled with the LUNA/UST debacle has had a ripple effect on other prominent dollar-pegged coins. Waves’ USDN showed signs of weakness in the early hours of the Asian session.

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