Tether [USDT] puts depegging fiasco behind; debuts on this network
- 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.
— Tether (@Tether_to) June 21, 2023
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.
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.
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.
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.