USDT Premium Surges to 1.99%: Stablecoin Stability in Question

The premium rate of USDT, a popular stablecoin, has reached 1.99%, according to recent data. This development has sparked interest and concern among investors and market participants.

The USDT premium rate is calculated by comparing the over-the-counter (OTC) price of USDT with the current exchange rate between the US dollar and the Chinese yuan (CNY). On February 3rd, the OTC price of USDT rose to 7.392 CNY, while the USD to CNY exchange rate was 7.2507 CNY. This resulted in a USDT premium of 1.99%.

This increase in the USDT premium rate has raised questions about the stability of the stablecoin and its ability to maintain its peg to the US dollar. Some market participants have expressed concerns about the potential impact of this development on the broader cryptocurrency market.

However, it is important to note that the USDT premium rate has fluctuated in the past, and this recent increase may be a temporary phenomenon. Market participants will continue to monitor the situation and assess the potential implications for the cryptocurrency market.