Tether (USDT) experienced a notable drop in market capitalization, the first in a continuous year of growth, as it decreased by more than 1 billion USD, from 140.5 billion USD to 139.2 billion USD in December 2024, signaling a shift in market dynamics.
The decline in Tether’s daily trading volume is substantial, plummeting from 300 billion USD to just 100 billion USD. This decrease mirrors the market cap reduction, suggesting a potential decrease in demand for USDT and could indicate a broader trend in the cryptocurrency market.
Social media influencers have contributed to spreading misinformation, creating uncertainty around Tether. Furthermore, Bloomberg reports that Tether may face delisting from European exchanges under MiCA regulations, adding to the challenges affecting Tether in recent times.