Types exactly like and can sometimes increase or decrease by double digit percentage in a day. Therefore, most people think associated with volatility. But some types try to achieve the exact opposite. That is , which is always fixed to fiat currencies like the US dollar in a theoretical 1:1 ratio.

But what if that rate cannot be kept?

The battle between USDT and USDC

The event of losing the latch and falling of eventually created shock waves throughout the cryptocurrency market. After that incident, the other big like , and DAI are also affected. But it looks like the biggest stablecoin – still can't regain its past glory despite having grown considerably.

On June 9, notification deployed stablecoins USDT above . Whereby, become 12th available this popular stablecoin.

New development helped USDT reached an astounding $72.5 billion market cap. But not long after that, the largest stablecoin corrected 0.1% and slid to $0.99.

Stablecoins are next to each other USDT is USDC, has achieved $5 billion in market value. Meanwhile, BUSD is the third largest stablecoin, accumulating an additional $1.4 billion in value. Both maintain the $1 close.

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Since May 9, more than 130 holders large has increased the balance at least $1 million and reduce their USDT balance by the same amount.


The source: CoinMetrics

Looking at the chart, USDT actually dropped significantly. Things got worse over the past two weeks as investors withdrew more than $10 billion from USDT, reducing the market capitalization to $75 billion. From May 9 to press time, USDT lost $11 billion in market capitalization as holders started swapping stablecoins for USD, similar to .

USDT is still the top stablecoin

Of course, USDT remains the leading stablecoin on the market. But more doubts began to spread over time. announced to maintain the pegged price to the US dollar with equivalent reserves including commercial paper, bank deposits, precious metals and government bonds.

However, the company does not disclose details of its reserve investments, which may contain some illiquid or leveraged assets.

Due to that ambiguity, founder and CEO Changpeng Zhao of said he considers USDT a high-risk stablecoin.

"It's a black box for most people, myself included," he said.