Tether to Lost $1B of Market Cap in a Month

As reported, since the beginning of October, Tether has burned about 990 million tokens
01 November 2018   1009

Against the background of active competition of stablecoins, a massive outflow of funds from Tether continues - since the beginning of October, the capitalization of the USDT token has decreased by more than $ 1 billion, CCN reportes.

On October 30, Tether Limited destroyed 100 million USDT, reducing the total volume of tokens to 1.8 billion. Another 50 million USDT were destroyed the next day.

In total, since the beginning of October, Tether has burned about 990 million tokens. It is noteworthy that at the begining of November 2017, about 450 million USDT were in circulation totally. With the current price of just under $ 1, token capitalization has decreased over the past month by more than $ 1 billion and more than 37% in history.

On October 31, Tether, which was at eighth place in the CoinMarketCap for a long time, moved down one line. At the time of publication, Monero is separated by a little more than $ 50 million.

Note that on  November 1 Tether sent 100 million USDT tokens to the Bitfinex exchange account.

While Tether is experiencing obvious difficulties, its competitors in the face of TrueUSD, USD Coin and Paxos Standard are showing rapid growth. The total capitalization of these steablcoins to date has exceeded $ 400 million. And although this doesn’t compare with Tether's loss of $ 1 billion, this fact suggests that the USDT is losing confidence due to the opacity of operations, problems with banks and dubious links with Bitfinex.

Tether to Report on Integration With Aave

One of the first steps in expanding in DeFi space is cooperation with Aave, non-custodian crypto-lending platform, formerly known as ETHLend
11 March 2020   257

Tether Technical Director Paolo Ardoino spoke at the Digital Asset Summit event and revealed his company's plan to expand in the decentralized finance (DeFi) space. Ardoino said that DeFi platforms have shown significant interest in the Tether stablecoin and are ready to work with its issuer.

The first such agreement was signed with non-custodian crypto-lending platform Aave, formerly known as ETHLend. The parties to the agreement intend to “ensure wider adoption of Tether (USDT) as a financial instrument in the nascent ecosystem of decentralized finance.”

In particular, we are talking about the so-called instant loans, when the user can receive funds without collateral, but must return them in the same block with which they were provided to him. Public attention to this new type of lending was attracted after attacks on the bZx platform. Companies note that it also finds many useful areas of application, for example, in arbitration on the blockchain or when moving trading positions between DeFi platforms.

I believe that DeFi is one of the most promising markets or technologies that are rising at the moment. The entire ability of having on-chain exchanges and loan issuance is a key element of growth for the entire crypto system. [...] It’s normal for Tether to try to lead the space or be the most-used stablecoin in the space.

 

Paolo Ardoino

Tether Technical Director

The interest rate on such deposits can vary significantly over time. Shortly after adding USDT to the Aave platform, it was 12%.