Tether, world’s most popular stablecoin has recovered its $1 par value following a sudden drop in $0.95 and a 3 billion turnover loss in just one day.
Today’s stablecoin trading price is $1. Investors can see that there are no fears about the cryptocurrency market chain reaction. TerraUSD, an unsecure cryptocurrency, was the only victim. Its value was supported in part by Luna cryptocurrency issuance algorithm. TerraUSD fell from $85 down to $0.005 in just one week. Tether is supported by short-term bonds and cash in an amount equal to the tokens.
Crypto investors see stablecoins like an analogue to bank assets that are safe from volatility. A large part of bitcoin trading happens in Tether. Today, the cryptocurrency’s turnover stands at $79.5 billion. This is a significant increase from the $82.9 billion that was reported a day before. In just one day, the company that serves the project has redeemed assets in excess of $3 billion. Paolo Ardoino (Tether CTO) stated that all requests were processed quickly through the company’s banking channels. The amount of the applications was between $100,000 and $600 millions.
Tether has been doubted by investors for years. The New York State Attorney General intervened to find that Tether’s reserve was short-term unsecured debt and commercial paper. Tether has committed to reducing their share. Currently, 52% of the funds remain in short-term US Treasury Bills. This number will rise by the next financial report.