In the context of the digital financial market in 2026, USDT (Tether) still maintains its position as the largest market-cap stablecoin. However, the fact that #USDT sometimes deviates from the 1 USD mark (de-peg) is always the focus of attention for professional investors. Below is an in-depth analysis of the causes leading to the price drop of #USDT from both economic and technical perspectives. #BinanceSquareTalks
1. The imbalance in decentralized finance (DeFi) liquidity pools
The most common cause of slight price fluctuations of USDT comes from automated market maker (AMM) protocols like Curve Finance or Uniswap. When the market faces turmoil, the fear mentality causes investors to simultaneously execute swap orders from USDT to rival stablecoins like USDC or DAI. The oversupply of USDT in liquidity pools while buying demand suddenly drops will directly pull the price of USDT below 1 USD on these platforms.
2. Risks related to transparency and collateral assets
The value of USDT is based on the belief that each token is backed by 1 USD of real assets. Any negative information related to Tether's reserve portfolio—such as doubts about the quality of commercial paper or delays in releasing audit reports from independent entities—can trigger a wave of selling. In 2026, as financial reporting standards for digital assets become stricter, any inconsistency could lead to a loss of the exchange rate peg.
3. Pressure from international legal frameworks
Tether is always under the scrutiny of regulatory bodies like the SEC (USA) or MiCA regulations in Europe. When there are news about legal investigations or sanctions related to the use of USDT in illegal activities, large financial institutions tend to withdraw capital to manage risks. The selling pressure from these 'whales' creates immediate downward price pressure on centralized exchanges (CEX).
4. The ripple effect from the collapse of large entities
The history of the cryptocurrency market has shown that the collapse of an exchange or a large investment fund can create a 'black swan.' If an entity holding billions of USDT faces a liquidity crisis and is forced to liquidate its entire amount to salvage its portfolio, the market will not have sufficient countervailing demand in time, leading to the price of USDT sliding deep below the 1 USD mark.
5. Interest rate fluctuations and traditional capital flows
In 2026, the monetary policy of the Federal Reserve (Fed) will still directly affect stablecoins. If real USD interest rates rise, investors tend to withdraw capital from digital assets to shift back to traditional safe-haven channels with higher yields. The process of redeeming USDT directly with Tether for cash sometimes encounters technical delays or limits, forcing users to sell directly on exchanges, causing temporary price drops.
Conclusion
Although Tether has many intervention mechanisms to maintain stability, the price drop of USDT is often the result of the resonance between market psychology and technical liquidity barriers. To manage risks, investors should closely monitor Tether's market capitalization on CoinGecko and periodic reserve reports for a multidimensional view.