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Tether [USDT] puts depegging fiasco behind; debuts on this network

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USDT’s launch on Kava came even as the stablecoin started to recover from the turbulence of last week.
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  • USDT’s market cap on the Kava chain rose to 10.65 million.
  • Reacting to the news of USDT launch, the native token KAVA jumped 5% at the time of writing.

Leading stablecoin issuer Tether announced the launch of  USDT on Layer-1 blockchain Kava. Thus, extending the flagship stablecoin’s liquidity to yet another network in the Web3 space.

Realistic or not, here’s USDT’s market cap in BTC’s terms

Kava was the latest addition to the list of networks hosting the world’s largest stablecoin by market cap. Additionally, big names like Ethereum [ETH], Tron [TRX], and Solana [SOL] accounted for the major share of USDT liquidity, according to DeFiLlama.

At the time of publication, USDT’s market cap on the Kava chain rose to 10.65 million. This equated to 10.6% of the total stablecoins market cap on the network.

Source: DeFiLlama

 

Native token reacts enthusiastically

Kava is part of the Cosmos [ATOM] ecosystem, with a co-chain design that combines the best features of Cosmos and Ethereum networks.

Reacting to the news of USDT launch, the native token KAVA jumped to $0.9712. its highest value in more than 10 days. Furthermore, the price retreated to $0.9453 at press time but maintained a 24-hour growth of 5%, according to CoinMarketCap.

USDT limps back to normalcy

USDT started to recover from the turbulence of last week during which it lost its U.S. dollar peg and fell to a price of $0.996. However, the peg was regained and the stablecoin was valued at $1.00 at the time of writing.

Source: CoinMarketCap

Moreover, the imbalance on the Curve 3Pool, brought about by the dumping of the devalued USDT in favor of other stablecoins, was corrected at press time. According to Dune, the pool held a near-to-equal share of all stablecoins, with USDT’s supply dropping from 61% on the day of the depegging to 33%.

Curve 3Pool is a stablecoin liquidity pool consisting of USD Coin [USDC], DAI, and USDT, and is supposed to hold roughly equal balances of all three at any given time. It is regarded as a bellwether for investor sentiment regarding stablecoins.

Source: Dune

Despite these hiccups, USDT’s market cap witnessed exponential growth in 2023, with a year-to-date (YTD) growth of over 25%. Furthermore, at the time of writing, its market valuation was over $83 billion. This cemented its position as the third-largest crypto asset by market cap.

Source: CoinMarketCap

 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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