Reasons behind the slight USDT deviation in data analysis: Market FUD causing significant decrease in 3Pool liquidity on Curve. Author: Joy. Summary: Following SEC’s lawsuit against Binance and Coinbase and two Korean crypto agencies temporarily suspending user withdrawals, USDT has once again deviated. Written by Joy at BlockingNews.

USDT deviated due to market fears and reduced liquidity on Curve's 3Pool following the SEC's lawsuit against Binance and Coinbase, as well as temporary suspension of user withdrawals by two Korean crypto agencies. Written by Joy for BlockingNews.

After Binance and Coinbase were sued by the SEC and two South Korean cryptocurrency agencies suspended user withdrawals, USDT has once again become unanchored. Joy, a writer for BlockingNews, analyzed the data and did not find a direct cause for the USDT’s unanchoring. The biggest reason may be the combination of FUD in the market and a lack of liquidity.

On June 15th at 12:00, according to 0xScope, in the past 24 hours, a total of 99 million USDT were sold in the 3CRV pool, resulting in a net outflow of 64.4 million US dollars. Two hours later, USDT’s share exceeded 73%, and the USDT price slightly deviated to 0.997. According to Delphi Digital data, the concentration of Curve 3pool USDT has increased to the highest level since the FTX crash in November 2022. In the past 48 hours, the inflow of Cureve 3pool USDT has increased significantly.

Some say that this is a market maker withdrawing USDT funds from Curve. However, if you want to exchange it for US dollars, you can directly exchange it with Tether without converting USDT to USDC or DAI on Curve. Not to mention that DAI cannot be directly exchanged for US dollars. Even if USDC is exchanged for US dollars through the issuer Circle, according to a market maker told BlockingNews, the handling fee is higher than directly exchanging USDT for US dollars through Tether. Therefore, this saying is not reliable.

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There is also a theory that Curve’s founder mortgaged a large amount of CRV to borrow USDT, which caused dissatisfaction among some members of the community, so they wanted to attack CRV, short CRV, and increase the lending rate of USDT. This theory has some truth, but there is no data to support it, and the amount of CRV on AAVE has not changed significantly. BlockingNews checked the founder’s address on Curve, and it only repaid 1.35 million USDT this afternoon to maintain the health value of the loan. Therefore, today’s market changes did not have a significant impact on it. On AAVE, the borrowing rates of USDC and USDT have increased significantly today, not just a unilateral impact on USDT.

In fact, the TVL of Curve 3pool has plummeted from a peak of $6 billion in January 2022 to only $400 million now, a total shrinkage of 93%, which also means that the liquidity of 3pool has significantly decreased. At the same time, the 24-hour trading volume of only USDT and USDC in Uniswap V3 is $222 million. As of 5:00 pm on June 15th, according to CoinMarketCap data, several of the top USDT-related trading pairs are with other stablecoins or fiat currencies, with a total trading volume of $1.7 billion. Curve 3pool can no longer be an important source of liquidity for the stablecoin market, and Curve has lost its pricing power in the market.

Reference: https://www.panewslab.com/zh/articledetails/yd400idc.html

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