Tether’s USDT market cap dips below $70B for an 8-month low

Tether (USDT), the largest stablecoin and the third-largest digital foreign money by market capitalization continues shedding its market worth amid the present market downturn.

On Thursday, USDT’s market cap dropped under $70 billion for the primary time since October 2021. The drop adopted a cascade of repeated declines shortly after the USDT market worth reached its all-time excessive above $80 billion in Could.

On the time of writing, Tether USDT’s market capitalization stands at $69.3 billion, up round $300 million from the multi-month low, based on knowledge from CoinGecko.

USDT 90-day market capitalization chart. Supply: CoinGecko

Tether’s largest rival, USDC, is the second-largest U.S. dollar-pegged stablecoin backed by the peer-to-peer funds know-how firm Circle. The stablecoin reached $50 billion market cap in February and has by no means crushed Tether’s market cap up to now.

Whereas Tether has been shedding its market share over the previous few weeks, different stablecoins just like the USD Coin (USDC) have been gaining worth just lately. As such, USDC’s market cap surged from about $48 billion in mid-Could to $55 billion in mid-June.

USDC 90-day market capitalization chart. Supply: CoinGecko

Tether’s shrinking market cap comes amid the continued market panic and uncertainty, with the market capitalization of all cryptocurrencies dropping under $1 trillion for the primary time since February 2021.

Associated: Complete provide of stablecoins dropped sharply for first time ever in Q2

Tether agency has been actively posting statements to guarantee buyers that the corporate has not been affected by the continued crypto lending disaster. On Monday, Tether declared that points across the crypto lending platform Celsius had nothing to do with the agency and wouldn’t influence USDT reserves.

Tether subsequently introduced plans to eliminate business paper backing for the USDT stablecoin on Wednesday. The agency didn’t reply to Cointelegraph’s request for remark.