Stablecoins In Trouble? USDC, DAI, USDD Depeg As SVB Crisis Deepens
Crypto News: Dealing with a heavy sell off, the global digital asset market registered a broad recovery on Saturday morning. Bitcoin, Ethereum price jumped by 3% and 5%, respectively. However, the top stablecoins USDC, DAI, USDD witnessed a heavy depegging as the Silicon Valley Bank crisis continues to haunt the crypto market.
USDC To Fall Amid Market Crash?
As per the data, USD Coin (USDC), the second largest stablecoin witnessed its dollar pegged value to drop by 11% over the past day. USDC is trading at an average price of $0.912, at the press time. Its 24 hour trading volume registered a massive surge of 321% to stand at $18.54 billion as it loses its $1 fixed value.
Circle issuer of USDC in statement mentioned that the Silicon Valley Bank is one of its six banking partners. However, they just use these banks to manage 25% of the USDC reserves held in cash. Meanwhile, the Circle is still waiting for clarity over how the Federal Deposit Insurance Corporation (FDIC) receivership of SVB will impact its users. Read More Crypto News Here…
USDC holds a circulating supply of around 40.9 billion while its market cap declined to stand at $36.4 billion. The deficit between the dollar pegged value and current standing value is on a stretch as the market is witnessing a high liquidity situation now.
However, USDC is not the only stablecoin which is facing depegging troubles amid the recent crisis. DAI, an Ethereum based stablecoin, dollar pegged value also took a hit. DAI price dropped by10% over the past day. It is trading at an average price of d $0.904, at the press time.
Bitcoin, Ethereum Price Rising Amid Bank Woes, Stablecoins Depeg| Read More Cryto News Here
Justin Sun’s USDD which have already seen the depeging related troubles, is also down by around 7% in the last 24 hours. USDD is trading at an average price of $0.92, at the press time.
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