Amid the FTX crisis, major stablecoins lost their peg for a short period of time.
USDT, USDC, USDD & BUSD de-pegged in yesterday’s trading session.
Than just a drop in cryptocurrency prices.
Significant market volatility caused by the collapse of the FTX exchange this week has hit stablecoins, with many of them momentarily de-pegging.
According to senior analyst Julio Moreno, practically all top stablecoins have suffered some kind of peg volatility this week.
Tether, the world's largest stablecoin, briefly fell to $0.97 on Nov. 10 as redemptions reached $600 million in the previous two days, he noted.
As per reports, the USDT is still trading slightly below its peg, at $0.998 at the time of writing.
Sources previously reported that the Tether de-pegging incident cited evidence that FTX and sister company Alameda Research attempted to short USDT.
Circle's USDC has also been rocked by the volatility, with redemptions exceeding $1 billion. As per reports, the stablecoin temporarily fell to $0.977 yesterday before quickly regaining its peg.
TrueUSD redemptions barely exceeded $1 million, Moreno noted, but that didn't stop a de-pegging to $0.98 yesterday. He highlighted that the Paxos USDP stablecoin fell as low as $0.96 as redemptions reached $100 million.
The Binance stablecoin, BUSD, experienced some volatility on the Gemini market, resulting in a temporary drop below $0.98.
Tron's algorithmic USDD stablecoin is still trading at $0.973, as per reports. At its lowest point yesterday, it was $0.952.
Concerns over the collateral supporting the stablecoin have grown as Tron's TRX token, which is used to redeem USDD, has dropped 12% since the start of the week. Justin Sun also charged FTX and Alameda with shorting the USD.
The de-pegging instances occurred on the same day as a swarm of stablecoins left the FTX exchange on November 10.
At the time of writing, most major stablecoins, including USDC, BUSD, USDP, GUSD, and TUSD, had returned to their dollar pegs, allowing market participants concerned about another Terra-style stablecoin crash to rest easy for the time being.
Markets have rebounded slightly following yesterday's rout, with a 5% increase in total capitalization, which is now back above $900 billion.
Read also: Binance Reveals Bitcoin Holdings During Market Crash
