Riyad Carey, a researcher from the platform named Kaiko, recently presented an analysis concerning stablecoins. He provided insights into the complicated de-pegging pattern seen in the biggest stablecoin named USDT last month. The research pointed out that the respective token saw an enormous 98% de-pegging event on the 7th of August.
USDT Reportedly Got Depegged in August 2023
According to Carey, this took place at a time when USDT traded at a discount of up to 2% at nearly every exchange. Recently, the analyst grasped the attention of the audience on Twitter and discussed the de-pegging of the stablecoin. Carey clarified the ambiguities of the readers by providing elucidation. As per the analyst, the platform released an exclusive metric to assess the severity extent of the de-peggings of the stablecoins.
According to the report that Kaiko published on the 7th of the last month, the USDT token traded at a minimized price in comparison with the $1 peg. The company brought to the front that the USDT de-pegging of that month was witnessed after a significant development. The token’s net selling worth had reached $500M across prominent crypto trading companies like Huobi, Uniswap, and Binance.
The Analyst Says the Depegging Threshold of UDST Is the Lowest
The new metric of Kaiko develops an exclusive depeg threshold regarding every stablecoin. In addition to this, the analysis brought to the front that the stablecoin has the lowest de-pegging threshold. On the other hand, another stablecoin called DAI has the biggest depegging threshold.
The analyst indicated that the decrease in the redemption charges could potentially handle the dominant problem in the USDT network. According to him, the 2nd quarter of the current year witnessed a profit of almost $850M. He added that the respective figure would not be influenced by the removal of the redemption fees.
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