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 <p class="is-style-lead">Kaiko, a crypto analytics platform, claims that the largest stablecoin by market cap, USDT, has been depegging in August.</p> 
 <p>A stablecoin <a rel="noopener noreferrer nofollow" title="depeg" href="https://thebittimes.com/tag/depeg.html">depeg</a>s 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 <a rel="noopener noreferrer nofollow" title="depeg" href="https://thebittimes.com/tag/depeg.html">depeg</a>ging all month. Why hasn't anyone noticed?<br><br>In this week's Deep Dive we propose a novel method of rating stablecoin <a rel="noopener noreferrer nofollow" title="depeg" href="https://thebittimes.com/tag/depeg.html">depeg</a>s, check it out below ️https://t.co/o8LuiTMSqW</p>— Kaiko (@KaikoData) August 31, 2023 
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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 <a rel="noopener noreferrer nofollow" title="depeg" href="https://thebittimes.com/tag/depeg.html">depeg</a> didn’t receive much attention since it wasn’t as significant or dramatic as previous events.</p> 
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  <img decoding="async" width="1024" height="559" src="https://cdn.thebittimes.com/images/2023/09/01/18696ba501a5a85f5cbcf32b2699e163.webp" alt="Kaiko: USDT has been depegging throughout August - 1" class="wp-image-14190172"> 
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    USDT Depeg Severity in August 2023 | Source: Kaiko Depeg Data 
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 <p>Kaiko says the <a rel="noopener noreferrer nofollow" title="depeg" href="https://thebittimes.com/tag/depeg.html">depeg</a> 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 <a rel="noopener noreferrer nofollow" title="depeg" href="https://thebittimes.com/tag/depeg.html">depeg</a>ging 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> 
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  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> Stablecoins are shaky as USDT shows signs of depeg 
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 <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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  <div class="wp-block-embed__wrapper"> <iframe title="What Exactly Is a Stablecoin?" width="1020" height="574" src="https://www.youtube.com/embed/vRkkuR4iibo?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe> 
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 <p>Kaiko’s report is a few months after USDT slightly and briefly depegged in June, dropping to $0.997.</p> 
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  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Cardano’s DJED stablecoin faces unminting and depegging challenges amid reserve ratio decline 
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/kaiko-usdt-has-been-depegging-throughout-august-tbt61149.html">https://thebittimes.com/kaiko-usdt-has-been-depegging-throughout-august-tbt61149.html</a></p>

Kaiko: USDT has been depegging throughout August

TheBitTimes

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