Stablecoin Supply Plummets After Depegging Event: $7.4B in Dollar-Pegged Tokens Withdrawn From Circulation
Good news everyone – the US Federal Reserve has just accomplished something no other government has done in the history of the world. They’ve single-handedly shrunk the world’s stablecoin supply.
No, seriously. By pulling the dollar peg from the world’s biggest stablecoin – the USDT – the Federal Reserve caused a shockwave in the cryptocurrency market, resulting in $7.4B in dollar-pegged tokens being withdrawn from circulation.
How did this happen?
Here’s the quick and dirty, for those of you who are just looking for the summary. In an effort to control some of the volatile cryptocurrency market, the US Federal Reserve decided to pull the dollar peg from the USDT stablecoin. This move made the USDT worthless, and caused other dollar-pegged stablecoins to follow suit.
This means that a huge chunk of the crypto market just vaporized. It’s a sad day for all the poor whales who had been quietly stockpiling their stash of USDT in anticipation of a bull run – it looks like they’ll just have to hoard some other stablecoin.
What do we do now?
Well, if you’re an investor or a trader, then you’ve just been handed the opportunity to get in on the ground floor of some potentially amazing coins. Here’s what you should do:
- Look for new dollars-pegged stablecoins. Plenty of projects are already emerging to try and fill the void created by the USDT’s fall from grace.
- Be open to new ideas. Consider diversifying into other stablecoin projects, such as those pegged to gold or other fiat currencies.
- Keep an eye on the news. It’s too early to tell what the Federal Reserve’s next move may be, and things could change in an instant.
And if you’re looking for some lighthearted entertainment, then make sure you keep your eyes peeled for a price war between the remaining stablecoins. I hear that the buffalo-pegged stablecoin is planning on raiding the badger-pegged one – who knows what could happen!
So, to wrap up, the world’s stablecoin supply just got a good old fashioned nuking, and all we can do is sit back and watch the show. Who knows what exciting new projects will arise to take the place of the USDT? Only time will tell.
