Sudden Imbalance: USDT Unleashed on Curve, Uniswap Traders Nervous Amid Bitcoin Downturn
A surge in USDT holdings within Curve’s renowned ‘3pool’ has raised concerns as it reached over 72% on Thursday morning, indicating a sudden disarray in the market.
Traders were alarmed as millions worth of tether (USDT) stablecoins began flooding the popular Uniswap and Curve pools on Thursday morning, causing initial unease among market participants.
USDT, typically maintaining a value of around $1, experienced a deviation from its peg to the US dollar, dropping as low as $0.9968, as reported by CoinMarketCap. Presently, the token is trading at approximately $0.998.
USDT balances within Curve’s widely-used 3pool, consisting of USDT, USDC, and DAI stablecoins, soared to over 72% early on Thursday. This suggested that traders had swapped tens of millions of USDT for the stablecoins USD coin (USDC) and dai (DAI), leading to an imbalance in the market.
As of now, Curve’s 3pool holds over $300 million worth of USDT, along with nearly $55 million each of dai and usdc.
This imbalance indicates a growing preference for DAI and USDC over tether. Similar sentiments were observed during the Terra collapse in May and the FTX crypto exchange crash in November, as previously reported by CoinDesk.
Paolo Ardoino, the Chief Technology Officer of Tether, hinted in a tweet that some traders might be seeking to exploit the prevailing market sentiment, which has experienced a downturn in the past 24 hours.
“These days, the markets are on edge, making it easy for attackers to take advantage of the general sentiment,” said Ardoino. “But at Tether, we are always prepared. Let them come. We are ready to redeem any amount.”