The largest stablecoin in the cryptocurrency, Tether (USDT), recently lost its $1 peg. Here are some facts that on-chain data reveals about this event.
Several On-Chain Indicators Spiked While Tether Suffered A Depeg
In the past couple of days, USDT became decoupled from its $1 peg as the stablecoin’s value plunged to $0.996. Since then, however, the asset has seen some recovery, although the $1 peg is yet to be regained as Tether still trends under $0.999.
While this isn’t the first time that the largest stablecoin by market cap has observed destabilization, it’s natural that this depegging event has still led to the emergence of fresh FUD in the market.
In a new post, the on-chain analytics firm Santiment has looked at how this USDT drop has reflected on the on-chain side of things. The first metric that’s of relevance here is the “trading volume,” which is simply a measure of the total amount of Tether that investors are shifting on the blockchain currently.
Here is a chart that shows how this metric’s value has changed recently:
The value of the metric seems to have been quite high in recent days | Source: Santiment
As displayed in the above graph, the Tether transaction volume shot up to a 3-month high of $10 billion during this event, meaning that investors were moving around a large amount of the asset on the chain.
Another metric, called circulation, measures the unique number of tokens that are being moved. From the below chart, it’s visible that this indicator has also rapidly risen to a high of 2.39 billion.
Looks like this metric has also been high recently
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Author: Hououin Kyouma
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