Ethereum gas prices recorded a high jump since Tuesday following a record increase in transactions involving stablecoins: Tether (USDT) and USD Coin (USDC).
Based on observations, USDT collected the highest gas in the last 24 hours after the decentralized exchange platform (DEX) - Uniswap, and surpassed 1inch.
While USDC is in 4th position.
This situation is very ironic when viewed at the current price per unit of Ethereum (ETH) is only $ 2,086 as it is supposed to lead to cheap gas. But due to the congested network, the drive gas recorded a high value.
For now, too many USDT transactions are made so that at one stage one of these coin transactions reaches a price of over $ 20.
As of May 12, more than 13 billion had been transferred, the highest record since May 2021. Even so, the USDT market value still recorded a decline of almost 4% in 24 hours, indicating an unbalanced movement.
Because of UST, USDT is broken
Following the collapse of the Terra empire that began earlier this week, most investors panicked and made a ‘panic selling’ USDT because it was confused with TerraUSD (UST).
For information, this morning Binance officially removed the LUNA list from its platform.
UST and USDT even under the same umbrella-stablecoin, both have different mechanisms. Read this article: TerraUSD (UST) Out! What Is The Fate Of Stablecoin Others?
UST: tied to collateral assets - LUNA, Bitcoin (BTC), and Avalanche (AVAX).
USDT: keeps its reserves in the form of cash, bonds, and other digital assets.
Meanwhile, USDC took a cue from the worst experience in the crypto market this year.
It is understood that this stablecoin has started to actively create reserves that only have cash and short -term treasury.
After the USDT declined yesterday, the price returned to normal at $ 1. But its market value still recorded a negative record.
But the USDC market value on the other hand held up with a 1.95% jump signaling investors shifting interest from UST to this coin.
