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AI summary of a third-party reportBearishNewsDesk

World Liberty Financial's USD1 sheds $401m in market cap in two weeks

CoinGecko data shows USD1's market capitalisation fell to about $4.02bn from $4.43bn on 6 Oct, as large redemptions hit Ethereum and BNB Chain, Onchain Benchmark says.

Why it matters: The redemption run cut USD1's supply faster than rival stablecoins on Ethereum, showing how a token backed by a few large holders can shrink quickly even while holding its peg.

InvestIn.News NewsDesk · 1 min read
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Picture from Cointelegraph for: World Liberty Financial's USD1 sheds $401m in market cap in two weeks
Image: Cointelegraph
Original reporting: Ezra Reguerra, Cointelegraph

Key points

  • USD1's market cap fell about 9.1%, from $4.43bn on 6 Oct to roughly $4.02bn, with reserves near $4.01bn.
  • Ethereum saw $185m in net redemptions across 63 burns between 6 Oct and 15 Oct; BNB Chain recorded $200m across 12 burns.

World Liberty Financial's USD1 stablecoin lost more than $400m in market capitalisation over two weeks, Cointelegraph reports, as holders redeemed large amounts on Ethereum and BNB Chain. CoinGecko data on Monday put USD1's market cap at about $4.02bn, down from $4.43bn on 6 Oct, a fall of roughly $401m or 9.1%. World Liberty's proof-of-reserves dashboard showed about $4.01bn in reserves.

Blockchain research firm Onchain Benchmark traced the contraction to concentrated redemptions. On Ethereum, net redemptions reached $185m across 63 token burns between 6 Oct and 15 Oct, while BNB Chain recorded $200m across 12 burns. Nearly $200m of the BNB Chain total came from a single unidentified address, and the researchers could not establish who controlled it or why the funds were redeemed.

More than 99% of tokens redeemed on Ethereum passed through a wallet labelled BitGo, USD1's current issuer and custodian, according to the report. Transfers between the two networks totalled under $1m, suggesting the supply was not simply moved across chains, and supply on Solana stayed at about $1.42bn. USD1 held its dollar peg throughout, trading between $0.998 and $1.000, with no sustained depegging found.

What to watch: Onchain Benchmark says the coming weeks of supply data will show whether fresh mints rebuild USD1's total or October marks the size it carries into its new issuer.

Read the full story on Cointelegraph

Live updates on NewsFeeds:StablecoinsEthereumDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)

How this was produced: an AI model wrote this summary of Cointelegraph’s report, which we credit and link above. Read our Editorial and AI policy. Spotted a mistake? See Corrections.

Not investment advice. Read the risk disclaimer.

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