Tether has recovered from a mid-October sell-off to trade near parity with the U.S. dollar once more.
The crypto market’s dominant stablecoin had fallen to 86 cents, with speculation surrounding tether’s dollar reserves. Despite fears that the stablecoin may see further selling, the price has since recovered to $0.9921. according to data from Coinmarketcap.
The recovery in tether had been helped by further transparency regarding the dollar reserves, however a recent announcement has stated that the 500 million tokens have also been removed from circulation. The timing of this move suggests that tether are burning tokens in excess of their stated reserves. This could be part of a plan to produce a more transparent audit.
The redemptions and growing competition in the stablecoin market are still signs of discomfort for tether.
Coinbase has announced that it will now support the Circle stablecoin USDC. The cryptocurrency exchange announced on a blog post that the coin had begun trading yesterday, the 23rd October. The move is significant as it is the first time Coinbase has shown support for a stablecoin and it also comes only a week after tether had seen a panic spike lower as traders continue to question the legitimacy of the coin’s 1:1 peg. The addition of USDC could be seen as a vote of no confidence in tether. This follows news last week that Binance was expanding its stablecoin offerings to four.
The underlying technology of the USDC coin was actually co-developed by Coinbase and Circle under the CENTRE banner.
The company’s blog stated, “The advantage of a blockchain-based digital dollar like USDC is easier to program with, to send quickly, to use in dApps, and to store locally than traditional bank account-based dollars. That’s why we think of it as an important step towards a more open financial system.”
USDC will also be added to the Coinbase Pro platform in coming weeks. The stablecoin already supported on the Coinbase Wallet, which supports ERC20 tokens.
The move to a stablecoin is a further sign that Coinbase are becoming more aggressive in their listing policy. Competitor exchanges have wider offerings and competition is heating up in th ecryptocurrency space.