Marker crisis – USDT market cap drops below $70 billion

Tether, issuer of the biggest stablecoin on the market, USDT, continues to lose value amid the current market downturn.

For the first time since October 2021, the market value of the USDT fell below $70 billion. The drop is the result of a cascading downturn since USDT hit its all-time high, reaching $80 billion in May this year.

USDT market cap drops

Tether’s market cap decline comes amid market uncertainty. The progressive rise in inflation and the economic crisis hit the asset market around the world and cryptocurrencies were no different. In almost two years, all cryptocurrencies have dropped below $1 trillion and the market capitalization continues to decline.

It should also be noted that other stablecoins, such as USDC, have been gaining ground in the market. In just a few months, USD Coin rose from $48 billion to $55 billion.

Furthermore, the Tether company has been posting many statements to offer more security to its investors. In the most recent posts, they assure investors that the company has not been affected by the current cryptocurrency lending crisis.

Since the start of the collapse of stablecoins like UST and Celsius, the company reiterates that USDT’s reserves have not been affected. Now, the company is also working to detach its image from commercial paper.