The USDC/USDT trading pair dropped as low as $0.973, the lowest price since Nov. 9, when FTX was collapsing.
The second-largest stablecoin at $42B market cap depegged after Circle revealed its $3.3B reserve at collapsing SBV.
It recovered to about $0.984 as of 02:54 UTC on Saturday.
USDC is meant to maintain a 1-to-1 peg with the U.S. dollar, but worries about the impact of Silicon Valley Bank’s failure drove it down from $1 on Friday.
Circle tweeted late Friday: “Circle and USDC continue to operate normally.”
The token’s value is backed by U.S. government bonds and cash-like assets, including a total $11.1 billion of cash deposits at various regulated banks
Investors grew concerned with the USDC stability after SVB, where Circle held a part of USDC’s backing assets, suffered a bank run.