Credit/Macro/Crypto Analyst, Former Credit/MA PM

Rose Choy

Crypto

<ul>
<li>USDT or Tether, the largest stablecoin, has been experiencing small discounts to peg at times (larger discount during market stress) but those looking for a blow up will be disappointed.</li>
<li>Tether's redemption dynamics are the main cause of the discount. Recent withdrawals in Tether and drop in market capitalization are the result of liquidations in the crypto space.</li>
<li>While Tether's reserves are not transparent, the Company is not regulated and is under no obligation to disclose their balance sheet/ reserves in full. </li>
</ul>


USDT or Tether, the largest stablecoin, has been experiencing small discounts to peg at times (larger discount during market stress) but those looking for a blow up will be disappointed.
Tether's redemption dynamics are the main cause of the discount. Recent withdrawals in Tether and drop in market capitalization are the result of liquidations in the crypto space.
While Tether's reserves are not transparent, the Company is not regulated and is under no obligation to disclose their balance sheet/ reserves in full. 


Data-Driven Analysis of Cryptocurrency Markets, Kaiko

Kaiko

Data-Driven Analysis of Cryptocurrency Markets

Kaiko is the leading cryptocurrency market data provider for institutional investors and enterprises. We empower market participants with accurate, transparent, and actionable financial data to be leveraged for a range of market activities. Kaiko’s mission is to be the foundation of the new digital finance economy by serving as a single source for market information. Our mission is premised on the idea that high-quality data drives market efficiency and greater transparency throughout the industry. For each of our enterprise clients, we build custom data plans designed for a range of use cases.

<ul><li>The Curve 3pool – long one of the most important sources of liquidity for DAI, USDC, and USDT – has continued to bleed this summer, shrinking by $175mn.</li><li>This outflow has been primarily led by USDC; users have withdrawn $125mn of Circle’s stablecoin.</li><li>By this metric, USDT has remained roughly even while $60mn DAI has been removed, $25mn of which came in just three transactions on July 31.</li></ul>

The Curve 3pool – long one of the most important sources of liquidity for DAI, USDC, and USDT – has continued to bleed this summer, shrinking by $175mn.This outflow has been primarily led by USDC; users have withdrawn $125mn of Circle’s stablecoin.By this metric, USDT has remained roughly even while $60mn DAI has been removed, $25mn of which came in just three transactions on July 31.

<ul><li>Stablecoins are systemically important in cryptocurrency markets, so even the slightest depeg can cause mass market contagion.</li><li>As such, it is concerning that stablecoins have been particularly volatile since the start of 2023</li><li>TUSD wobbled amid Prime Trust's closure, USDT depegged due to mysterious selling activity, BUSD has been increasingly volatile since Paxos halted issuance, and USDC crashed during the March banking crisis.</li></ul>

Stablecoins are systemically important in cryptocurrency markets, so even the slightest depeg can cause mass market contagion.As such, it is concerning that stablecoins have been particularly volatile since the start of 2023TUSD wobbled amid Prime Trust's closure, USDT depegged due to mysterious selling activity, BUSD has been increasingly volatile since Paxos halted issuance, and USDC crashed during the March banking crisis.

<ul><li>Ever since the March banking crisis, crypto trade volume and prices have been in the doldrums, with no strong movements in either direction.</li><li>Over the weekend, daily volume dropped to multi-year lows.</li><li>Yet, amid the lull, Tether’s market cap is quickly approaching a new all time high, with the total supply currently at $82.9 billion.</li></ul>

Ever since the March banking crisis, crypto trade volume and prices have been in the doldrums, with no strong movements in either direction.Over the weekend, daily volume dropped to multi-year lows.Yet, amid the lull, Tether’s market cap is quickly approaching a new all time high, with the total supply currently at $82.9 billion.

Why Is Tether's Market Cap Approaching ATH?

<ul>
<li>The best design often goes unnoticed. DeFi lending and borrowing stalwarts Aave and Compound have proven themselves to be great design: critical for day-to-day functioning but largely taken for granted.</li>
<li>This becomes apparent when a competitor experiences an exploit, highlighting the reliability of Aave and Compound</li>
<li>When last we checked in on these protocols in December they were in a period of change.</li>
</ul>


The best design often goes unnoticed. DeFi lending and borrowing stalwarts Aave and Compound have proven themselves to be great design: critical for day-to-day functioning but largely taken for granted.
This becomes apparent when a competitor experiences an exploit, highlighting the reliability of Aave and Compound
When last we checked in on these protocols in December they were in a period of change.


Leveraging LSDs: The Next Era of Lending and Borrowing

52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Tether (USDT CURNCY)

Tether (USDT) - Not the Next Domino

This insight explains why USDT is not the next blow up in crypto and why there could be a small persistent discount to peg, due to redemption...

Rose Choy

Curve 3pool Sees $175m Outflows

The Curve 3pool – long one of the most important sources of liquidity for DAI, USDC, and USDT – has continued to bleed this summer, shrinking by...

Kaiko

The State of Stablecoins

Stablecoins are systemically important in cryptocurrency markets, so even the slightest depeg can cause mass market contagion.

Kaiko

Why Is Tether's Market Cap Approaching ATH?

Ever since the March banking crisis, crypto trade volume and prices have been in the doldrums, with no strong movements in either direction.

Kaiko

Leveraging LSDs: The Next Era of Lending and Borrowing

DeFi lending and borrowing stalwarts Aave and Compound have proven themselves to be great design: critical for day-to-day functioning but largely...

Kaiko

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)