Many losses their trust to stablecoins since the LUNA incident, and with that USDT going back into a $1 price it doesn’t tell about the trust of the public, but of course it tells about the market is getting better. What’s scary here is that, if a supposed stablecoins becomes more volatile, then we might see more people to panic. USDT should stat at the price of $1, or else many will lose their trust again.
You need to distinguish that UST and USDT are not the same thing at all, UST is an algorithmically stable coin backed by other cryptocurrencies, so it will crash when the market drops, while USDT is also backed by USD and some other assets like bonds...
The collapse of UST caused panic but the stable coin market is still very active, many blockchains are making their own stable coins, despite the recent collapse of UST.
https://decrypt.co/104642/defi-aave-stablecoin-ghoThe way UST and USDT works are completely different, which is why the UST collapsed while the USDT coin is still around, however we still need to be careful, over the years there have been many accusations that at some point in time USDT was not backed one to one with dollars, and while this may not seem to be a problem for most as long as that is not the case now, to me it is a big problem because if that could happen at any point in time then there is a chance that it will happen again in the future.
