Since tether lost parity with the U.S. dollar, its supply has dropped by a quarter as tokens flow back to the issuing company's "treasury" wallet.
Replacing tether's role in the crypto markets will require an obsession with maintaining transparency and trust.
In theory, traders can redeem USDT for dollars with the issuer, Tether Ltd. Instead, they appear to be cashing out through Kraken.
Binance sees stablecoins like tether, and potentially the Gemini Dollar, as "critical for our ecosystem," the exchange's chief financial officer says.
The Bibox exchange dominates trading in the Gemini Dollar, the Winklevoss twins' month-old stablecoin. Its volume surged when tether's peg broke.
The Gemini dollar has broken its peg, climbing to an all-time high of $1.19 on Tuesday.
Binance suspended tether withdrawals Monday after pushing back against rumors that the exchange would delist the stablecoin.
Malta-based cryptocurrency exchange OKEx has announced that it is listing four U.S. dollar-pegged cryptocurrencies for trading.
The price of the tether stablecoin (USDT) has fallen to an 18-month low, despite a general rise in the wider crypto markets.
Bitfinex has hit back against claims it is insolvent, disclosing wallet addresses appearing to show it holds over $1.5 billion in crypto assets.