USDC transfer volume hit 5X USDT’s in fallout from FTX collapse
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Stablecoin USD Coin (
USDT briefly lost its peg to the U.S. dollar following the FTX collapse amid fears it was exposed to Alameda Research and FTX, which Tether denied.
On-chain evidence suggests the two firms were attempting to short the stablecoin.
USDT had been recording transfer volumes much higher than USDCs up until May 2021, after Tether had increased the supply of the token from $8.79 billion to $61.82 billion over the last year, representing an increase of 603%.
Despite the subsequent change in consumer preferences, Tether had referred to the growth in market capitalization as an indication of “the market’s continued trust and confidence in Tether,” and noted every token can be redeemed for U.S. dollars on a 1:1 basis.
