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Stablecoin Giant Tether Loses Ground to Rival Circle on Redemptions

  • Rival stablecoin USDC gains $3.4 billion in market value
  • Investors flee from USDT after it briefly lost its dollar peg
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Circle’s USD Coin is reaping the benefits as circulation of Tether, the world’s largest stablecoin and its closest rival, continues to decline in a wave of redemptions.

Earlier this month, the collapse of algorithmic stablecoin TerraUSD pushed investors to seek sanctuary in other cryptoassets that aim to maintain a one-to-one peg with the US dollar. While the subsequent market contagion caused cryptocurrencies and stablecoins alike to wobble, Tether’s USDT briefly lost its dollar peg and fell to 95 cents on May 12 -- a knock that’s been followed by $8.5 billion in redemptions to date, according to data from CoinGecko.