Investors React as Tether Experiences Its Largest Market Value Drop in Two Years – BitRss

Tether (USDT), the world’s largest USD-backed stablecoin, has faced its biggest weekly market value decline in two years. During this period, the market value of USDT dropped by over 1%, falling to $137.24 billion. This decline marks the most significant drop since the FTX exchange collapse in November 2022.

Background of USDT’s Market Value Decline

The sharp decrease in USDT’s market value followed the decision by European Union-based exchanges and platforms like Coinbase to remove USDT from their services due to MiCA regulations. The MiCA regulations will be fully enforced by December 30, 2024, but rules concerning stablecoins have been in effect for the past six months.

MiCA mandates that stablecoin issuers must obtain licenses to offer or trade assets categorized as “asset-referenced tokens” (ART) or “e-money tokens” (EMT). Tether’s USDT falls under the EMT category, linked to a national currency (the US dollar).

Market Dominance of Asia and the US Continues

Despite these developments, crypto analysts believe the effects will be limited. Karen Tang, responsible for A…