Tether market cap falls by more than $10 billion in May

Tether (USDT) remains the largest stablecoin by Market Capitalization as of June 2022. Despite the loss of peg, this stablecoin is still among the top five digital assets by market capitalization.

Tether ended the fifth month of the year with a regional market capitalization of $72.5 billion, according to be [In] crypto research.

This is a 12% drop from the Market Cap on May 1. On that day, USDT had a trading volume of $61.42 billion, which corresponded to a market capitalization of about $83.16 billion.

Why is the market cap falling?

Negative cryptocurrency market sentiment prompted many retail investors and institutions to dump digital assets around May 9. This has had a huge impact on the USDT market capitalization.

Investor interest fell in May due to unfavorable geopolitical events, a stronger dollar, renewed interest in precious metals such as gold, and a rise in interest rates that have led to an increase in demand for government bonds and bonds.

In May, the number of large USDT-related transactions reached a high of 19.510 at the price of $0.9747 on May 12.

This corresponds to a large trading volume of $31.8 billion at the same price.

Trading volume of $31.8 billion multiplied by $0.9747 by $31 billion.

USDT hit an intraday high of $0.9977, checking the intraday low of $0.9485 and closing the day at $0.9976.

The trading volume is about $141.05 billion and corresponds to a regional market capitalization of $81 billion.This is a 2% drop in Tether's opening-day market cap.

Due to the uptrend of the market increasing in the last two weeks of the month, USDT was unable to regain the anchor rate with the dollar for the rest of May.

Tether Price Reaction (USDT)

USDT opened on May 1 at $1, reaching a monthly low of $0.9485 on May 12 and closing the month at $0.9994.

Overall, this equates to a 0.06% drop between Tether's opening and closing prices in May.