If USDT collapses, which stablecoin should we hold?
In the views of many Web3 industry insiders, USDT has always been a huge point of concern in the market. Rumors have long circulated that Tether manipulates the market by issuing more USDT, and there are occasional reports that the U.S. Treasury might take action against Tether, the issuer of USDT, to investigate whether USDT is used for illegal activities.
Although Tether's CEO has stepped forward to refute these claims, in the cryptocurrency world, bad news spreads faster than a rocket. When FUD (Fear, Uncertainty, Doubt) arises, who wouldn't panic?
Today, let’s talk about what stablecoin we should switch to if USDT really collapses to save ourselves!
First, let’s discuss why USDT makes people anxious. USDT is the 'big brother' of stablecoins in the crypto world, with 350 million users globally, a market cap of 120 billion dollars, firmly the third-largest crypto asset, only behind BTC and ETH. Tether has made a fortune from USDT, claiming a net profit of 10 billion dollars in 2024 and asserting a 1:1 peg to the U.S. dollar, backed by 97 billion dollars of U.S. Treasury bonds, as well as reserves in Bitcoin, money market funds, and more.
But what’s the problem? Transparency! Tether is often criticized for the lack of transparency in its reserves, and its audit reports are vague. Coupled with regulatory pressure, the U.S., EU, and mainland China are all watching it closely, especially since the EU has already forced Coinbase to delist USDT in Europe.
Therefore, a collapse of USDT is not impossible; if that day comes, the crypto world will likely experience a 'major earthquake'. There are plenty of alternatives, such as USDC, FUSD, UST, etc., but which one is the best?
We must mention Solayer's yield-generating powerhouse sUSD! This one is backed by U.S. Treasury bonds, and you can exchange USDC for sUSD, automatically earning 4% annualized yield, truly a 'hands-free' profit. It runs on Solayer's InfiniSVM, claiming to handle over 340,000 TPS, with incredibly fast speeds, making DeFi operations extremely smooth. sUSD not only generates yield but can also be used globally with Solayer's Emerald Card for purchases, whether it's coffee or shopping on Taobao. Not to mention the ecological benefits of Solayer, such as airdrops, Nansen discounts, and BTC rewards, all of which sUSD holders can take advantage of.
Solayer is still a new project, and its ecosystem is not as mature as USDT's, so one must be cautious of smart contract risks. However, Solayer has acquired Fuzzland for security, and the team seems quite reliable, with many on X calling 'sUSD the next big weapon'. For those looking for stability and profit, sUSD could be the way to go!
