On-chain data shows that traders appear to have dumped USDT in large quantities in the main stablecoin pools of Curve Finance and Uniswap, causing the pools to become severely unbalanced.
The USDT balance surged to 62% in the Curve 3 pool, which consists of USDT, USDC and DAI stablecoins, while USDC and DAI account for about 19-19% of all assets in the pool. Uniswap’s USDT-USDC trading pool is one of the most liquid pairs on the platform, with a USDT balance of $105.4 million and a USDC balance of just $6.5 million.
This imbalance suggests that traders tend to hold DAI or USDC rather than USDT because there are more USDT sellers in the pool.
According to data from CoinDesk and CoinMarketCap, due to selling pressure, USDT has been below 1 dollar during the day trading hours of US stocks, falling as low as 99.76 cents at one point. The reason for the sell-off was uncertain at press time.