US-based stable cryptocurrency issuer Tether took a big hit last year with the collapse of the Terra ecosystem. Confidence in all issuers waned after Terra's dollar-pegged stablecoin UST bottomed out.
Concerned investors have sought to reduce risk by distributing their dollar-denominated digital assets on various ventures. Therefore, while Tether suffered a significant loss in market share, small issuers profited from the crisis.
However, Tether has managed to increase its market value to its previous level in the past 11 months. According to crypto tracker CoinGecko, the total supply of USDT has reached $81.4 billion. Tether lost 20% of its market value after the crisis last year.
Another crisis was instrumental in the recovery of the giant stablecoin issuer. It turned out that another stable money startup, Circle, had deposits of 3 billion dollars in bankrupt bank Silicon Valley. USDC holders panicked after the news; It has turned to other tokens like USDT.
Henry Elder, chief executive of Wave Digital Assets, claims that investors are showing more interest in non-US-based stablecoin ventures, even as the recovery is taking place.