Cody McGrath 
There is a dwindling whale interest in Tether as the uncertainty over USDT’s reserve grows.
According to new data, ongoing aversion to Tether (USDT), the largest stablecoin, appears to have crept into its largest wallets.
According to data from blockchain analytics startup Santiment, addresses holding $100,000 to $10 million USDT are nearing three-year lows in terms of supply owned.
This trend coincides with an increasing number of traders abandoning USDT in favor of alternative stablecoins like USDC and DAI. As a result, the DeFi platform Curve now has a significant USDT imbalance in its liquidity pool, as more traders exchanged the coin for other tokens.
Curve’s 3pool is made up of USDT to the tune of $630 million.
A decrease in the number of significant accounts holding USDT suggests that some traders are losing faith in the cryptocurrency. Repeated dumping of the stablecoin could put a strain on Tether’s redemption process, potentially de-pegging the token.
Since the Terra crash, USDT has traded at a little discount to its $1 peg for nearly two months. A widening of this discount may indicate a chance to purchase USDT at a discount, assuming a full recovery.
Tether has consistently honored token redemptions of about $20 billion in the last two months. It is also confident that its reserves can withstand any additional selling pressure.
The majority of the selling pressure on USDT this year stems from confusion over the nature of its reserves. Tether maintains that its reserves have been audited by a Cayman Islands-based corporation, but some investors have demanded a more detailed breakdown of its holdings.
Tether data shows that cash and commercial paper, including US Treasuries, account for 85 percent of its reserves. However, investors have demanded clarification on the firm’s holdings of non-US commercial paper.
Tether held around $20 billion in commercial paper as of the most recent audit, the majority of which is rated as investment grade. However, it remains unknown who the issuers are.