The crisis is intensifying in the cryptocurrency market, and the largest stablecoins are losing their stability. 

Stablecoin Market Is Destabilized

On Thursday, May 12, the largest stablecoin USDT lost its peg to the US dollar. USDT was down to $0.95 in the morning. As of 15:30 (GMT+3), the peg has almost been restored, and the stablecoin is trading at $0.99. Here and below, prices are based on the CoinMarketCap data. 

On the contrary, the second most capitalized stablecoin USDC was slightly growing in price, though not so much — up to $1.007. BUSD, the third most expensive currency in terms of capitalization, rose slightly more to $1.024. 

The fluctuations of stablecoins’ rates are occurring in the background of the crisis, which developed around the algorithmic stablecoin UST, recently occupying third place by the volume of capitalization. Another algorithmic stablecoin DAI, on the contrary, went up a little — to $1.0129. Quotes of other stablecoins also grew insignificantly, but many smaller stablecoins fell in price and are trading below their nominal value: 

  • USDN — $0.83; 
  • FEI — $0.99; 
  • USDD — $0.98;
  • USDX — $0.54;
  • SUSD — $0.96;
  • XSGD — $0.71, etc. 

We can state that stablecoins as a whole are destabilized. Some executives have already begun active actions to support them. For example, the head of the Tron Foundation Justin Sun voiced fears that the FUD attack on Terraform Labs projects will be followed by a similar attack on Tron (TRX) and the algorithmic stablecoin Neutrino USD (USDN), which by the moment is also detached from the dollar and trades at $0.83. Sun has plans to allocate $2 billion through the TRON DAO Reserve organization to support USDN.

Author: Evgeny Tarasov
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