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<p class="is-style-lead">Kaiko, a crypto analytics platform, <a href="https://research.kaiko.com/insights/defining-depegs-a-new-metric-for-stablecoin-stability" target="_blank" rel="noopener">claims</a> that the largest stablecoin by market cap, USDT, has been depegging in August.</p> 
<p>A stablecoin depegs when it trades below the fiat currency or asset it’s meant to mirror.</p> 
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   <p lang="en" dir="ltr">USDT has been depegging all month. Why hasn't anyone noticed?<br><br>In this week's Deep Dive we propose a novel method of rating stablecoin depegs, check it out below ⬇️<a href="https://t.co/o8LuiTMSqW" target="_blank">https://t.co/o8LuiTMSqW</a></p>— Kaiko (@KaikoData) <a href="https://twitter.com/KaikoData/status/1697261046472540307?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">August 31, 2023</a>
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<p>Kaiko data shows that on Aug. 7 at 8 am UTC, USDT hit a 98% depeg severity, meaning that stablecoin traded at a discount on almost every platform. </p> 
<p>However, the depeg didn’t receive much attention since it wasn’t as significant or dramatic as previous events.</p> 
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  USDT Depeg Severity in August 2023 | Source: <a href="https://research.kaiko.com/insights/defining-depegs-a-new-metric-for-stablecoin-stability" data-type="link" data-id="https://research.kaiko.com/insights/defining-depegs-a-new-metric-for-stablecoin-stability" target="_blank" rel="noopener">Kaiko Depeg Data </a>
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<p>Kaiko says the depeg in August follows rapid net selling of USDT worth $500 million across Binance, Huobi, and Uniswap within a few days.</p> 
<p>Historically, recurring USDT depegging has been attributed to several factors like the redemption fee, lowered liquidity, and minimum requirements set by Tether Holdings, the issuer.</p> 
<p>However, Kaiko highlights that continual discounts could erode the trust in the world’s largest stablecoin.</p> 
<p> You might also like: <a href="https://crypto.news/stablecoins-are-shaky-as-usdt-shows-signs-of-depeg/"> Stablecoins are shaky as USDT shows signs of depeg </a> </p> 
<p>Kaiko suggests that resolving the depeg concerns could be achieved by removing the redemption fee, leading to lower costs and a reduction in the stablecoin’s supply.</p> 
<p>Despite reporting $850 million in Q2 2023, the analyst asserts that this change wouldn’t notably impact profits.</p> 
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<p>Kaiko’s report is a few months after USDT slightly and briefly <a href="https://crypto.news/stablecoins-are-shaky-as-usdt-shows-signs-of-depeg/">depegged</a> in June, dropping to $0.997.</p> 
<p> Read more: <a href="https://crypto.news/cardanos-djed-stablecoin-faces-unminting-and-depegging-challenges-amid-reserve-ratio-decline/"> Cardano’s DJED stablecoin faces unminting and depegging challenges amid reserve ratio decline </a> </p>

Kaiko: USDT has been depegging throughout August

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