The total market cap of USDT stablecoins issued by Tether has dropped to $69.3 billion, last seen in October 2021.

Before Terra’s collapse, the figure was $83.42 billion (as of May 1).

According to CoinGecko, the capitalization of Tether rival USDC Coin (USDC) has exceeded $55 billion.

During the period under review, USDT dominance decreased from 50.9% to 45.7%, while USDC’s market share increased from 30% to 36.2%.

Recall that during the month of May, Tether Holdings Limited purchased $10 billion USDT tokens from USDT holders.

Holders of stablecoins began switching to fiat money during the collapse of the algorithmic stablecoin UST and the LUNA token. On May 12, the price of USDT briefly lost par against the US dollar – after which the issuer redeemed $600 million in assets in one day.

The decline in capitalization continued in June due to problems with Celsius crypto lending platform funded by Tether Holdings Limited. The issuer ruled out the impact of the event on stablecoin reserves.

On June 15, the company denied rumors that Chinese commercial papers were dominant in the collateral. The firm suggested that the information was already being disseminated by some “coordinated funds” to generate additional profits in a “stressed market”.

The information that Tether was lending to Three Arrows Capital, which allegedly had solvency problems, was also falsely named by the company.

Previously, experts from the Cumberland OTC cryptocurrency platform had agreed that the next asset in danger of collapse would be one of the leading stablecoins.

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