USDT loses 88% of its value on the EvoDeFi bridge of Oasis
USDT has been caught up in the stablecoin market panic! The asset’s link to the dollar is eroding. On Thursday, May 12, USDT plummeted to $0.95 per coin in the morning! The rate leveled down only a half-hour later, although it never surpassed the $1 USD mark. Is this a foreshadowing of the impending crisis? Bitcoin’s fall lowered market morale to a one-month low.
On the Oasis blockchain, USDT and USDC began to lose parity with the dollar on June 8. While the USDC immediately reverted to normal, the USDT fell until it hit $0.12!!! This appears to apply solely to Oasis blockchain protocols based on the EvoDeFi bridge at this time. Valley Swap, Oasis’ primary decentralized exchange, accounts for just 77 percent of total blockchain value (TVL).
The EvoDeFi team halted the bridge on June 8. In other words, users may no longer move USDTs to another network and resell them at market pricing. Simultaneously, arbitrage is prohibited, and no one may contribute to the cancellation of USDT on Oasis. According to DefiLlama, the entire value locked in at Oasis has decreased by more than 40% in only 24 hours! from about $215 million to $62 million at the time of writing.
The impact of Bitcoin fluctuation
Bitcoin’s drop below the $34,000 barrier has sent market confidence down to a six-week low. The cryptocurrency community is losing trust in bitcoin at an alarming rate. Analysts at Santiment noted this on their Twitter feed. The stablecoin USDT abruptly lost parity with the dollar on the Oasis blockchain, going below $0.12. We’re talking about the EvoDeFi bridge, which supports the majority of Oasis-based protocols.
However, unlike the algorithmic UST, USDT is backed by a solid fund rather than smart contracts. This might be the reason why the downward trend did not become prolonged. Tether reserves are made up of fiat currency, bonds, precious metals, collateralized loans, and other types of digital assets. The market capitalization of USDT is present at $81 billion.
But that stock won’t last much longer. According to Tether technical director Paolo Ardoino, holders have withdrawn $300 million in just 24 hours! Even if the company says it is ready to convert bigger sums, the current market environment gives traders little trust in the security of their portfolios. Remember that UST lost its peg to the dollar?
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