- Curve’s 3pool and Uniswap V3 USDT pool experience massive selloffs as traders dump the stablecoin.
- A Kaiko report indicates that the recent selloffs have no clear catalyst, raising questions.
- The report also finds no evidence supporting a claim by Tether’s CTO that the dump could have been foul play.
Amid the recent market slowdown, USDT continues to face massive sell-offs on major crypto exchange platforms. Notably, Curve’s 3pool and Uniswap V3 have been majorly affected as traders ditch the leading stablecoin.
The USDT dump, which started in July, saw a selloff of over $100m of USDT on Uniswap. Even though the pressure eased off towards the end of July, it has since picked back up. Since last weekend, the exchange’s USDT pool has become imbalanced as its USDT pools continue to suffer massive depletion.
Similarly, Curve has seen a selloff of about $35 million worth of USDT since the start of the month. Consequently, the Curve’s pool is heavily imbalanced, holding 60% USDT.
A Kaiko report indicates that there is no apparent bearish catalyst for the questionable USDT dump, an argument which is supported by the massive Q2 revenues recently reported by Tether. However, Tether’s CTO claims the selloffs could have been foul play and “closely timed” with Binance’s listing of FDUSD, according to the report.
The FDUSD stablecoin issued by Hong Kong-based First Digital was listed on Binance on July 26th. However, despite the claims by Tether’s CEO, the Kaiko report claims there is no evidence to link FDUSD’s Binance listing and USDT selloffs.
Additionally, the report shows that FDUSD volume had struggled to take off despite its Binance listing. Likewise, FDUSD being listed with zero-fee trading pairs doesn’t seem to have positively affected the token’s price, which is surprising. According to the report, the low trading volume shows traders have little interest in the stablecoin.
As a result of the massive selloffs, USDT has depegged slightly from the US Dollar in recent days on major exchanges. Data from CoinMarketCap show that the stablecoin is currently priced at $0.9987, a 0.10% decline in the past seven days. Likewise, FDUSD is selling at $0.9994, a 0.06% decline in the same period.
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