The Silicon Valley Bank (SVB) collapse has negatively impacted many altcoin projects. While the markets are dragged into panic, everything is shaking again with a domino effect. The latest data shows that various stablecoins are losing their peg. Here are the details…
Altcoin projects affected by SVB events
The crypto-asset market, which has been dealing with a heavy sell-off, posted a broad recovery on Saturday morning. Bitcoin and Ethereum price rose 2% and 4% respectively. However, as the Silicon Valley Bank crisis continues to plague the crypto market, top stablecoins USDC, DAI and USDD witnessed a heavy decline. cryptocoin.com As we reported, USD Coin (USDC), the second largest stablecoin, has seen its dollar-pegged value drop by 11% in the past day, according to data.
USDC is trading at an average price of $0.912 at the time of writing. 24-hour trading volume increased by 321 percent to $18.54 billion as it lost $1 of its fixed value. Circle, the issuer of USDC, said in a statement that Silicon Valley Bank is one of six banking partners. However, they only use these banks to manage 25 percent of their USDC reserves held in cash. Meanwhile, Circle still awaits clarity on how the Federal Deposit Insurance Corporation’s (FDIC) SVB reception will affect its users.
DAI loses steady at USDD
USDC has a circulating supply of approximately 40.9 billion, while its market cap has slumped to $36.4 billion. As the market is witnessing a high liquidity situation at the moment, the gap between the pegged value of the coin and its current fixed value is stretching. But USDC isn’t the only stablecoin to face de-pegging issues amid the recent crisis. DAI, an Ethereum-based stablecoin, has also been hit. The DAI price has dropped 10 percent over the past day. It is trading at an average price of $0.904 at press time.
DAI is an algorithmic stablecoin secured by the assets of MakerDAO, which includes USDC. On-chain data from Dune shows $563 million worth of DAI has been burned in the last 24 hours. In total, the stablecoin has a market cap of $4.9 billion. Curve 3pool’s liquidity pool was also hit as investors fled USDC. The USDT share of the pool fell below 1.5 percent on Saturday afternoon. As it should have been earlier this week, USDT was evenly split between USDC and DAI. Justin Sun’s USDD, who has already had issues with depeping, has also dropped nearly 7 percent in the last 24 hours. USDD is trading at an average price of $0.92 at the time of writing.
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