Destabilization of the main stablecoins on the market volatility and growth in buybacks background

Nearly all of the major stablecoins lost their binding to the US dollar on the FTX rumor's background, but most of them bounced back as markets stabilized.

The fall in the price of cryptocurrencies is not the only consequence of the “cryptoinfection” caused by FTX last week.

The significant market volatility that week, caused by the FTX crash, affected stablecoins, many of which temporarily fell in price.

According to Julio Moreno, senior analyst at CryptoQuant, almost all of the leading stablecoins experienced some level of volatility during this period.

He also noted that the world's dominant stablecoin Tether temporarily dropped to $0.97 on Nov. 10 as ransoms topped $600 million in recent days.

CoinGecko is now reporting that USDT is still slightly below its peg, trading at $0.998 as of Nov. 11.

Cointelegraph reported on the Tether takedown incident, citing evidence that FTX and sister company Alameda Research were attempting to short USDT.

Circle's USD Coin was also not immune to volatility as buybacks topped $1 billion. The stablecoin briefly dropped to $0.977 on Nov. 10, but quickly regained its peg, according to CoinGecko.

TrueUSD buybacks nearly topped $1 million as reported by Julio Moreno, but that didn't stop TUSD from dropping to $0.98 yesterday. Pax Dollar (USDP) stablecoin price fell to $0.96 as buybacks reached $100 million.

The Gemini exchange saw some volatility in Binance's stablecoin, BinanceUSD (BUSD), resulting in a short-term drop to $0.98.

Algorithmic stablecoin Tron USDD is still far from its peg and is currently trading at $0.973, according to data from CoinGecko. On November 10, it fell to $0.952 at the peak of volatility.

Concerns about backing the stablecoin are on the rise as Tron, used to buy back USDD, has fallen 12% since the start of last week. Justin Sun also accused FTX and Alameda of shorting the USDD.

The depegging incidents coincided with the flood of stablecoins that left the FTX exchange on Nov. 10.

As of November 11, most of the major stablecoins, including USDC, BUSD, USDP, GUSD, and TUSD, are back pegged to the US dollar, which means that market participant who feared another collapse of stablecoins like Terra can breathe a sigh of relief again.

Markets recovered somewhat from the rout on Thursday, November 10th, with a 5% increase in total capitalization to over $900 billion again.