The USDC drains from Circle have exceeded USD 10 billion since the collapse of SVB, the Tether dominance increases
The USDC drains from Circle have exceeded USD 10 billion since the collapse of SVB, the Tether dominance increases
weeks after the collapse of a series of US banks and the chaos of the Credit Suisse, the cryptoma market has recovered significantly, but the same does not apply to a prominent stable coin that has served as a backbone for defi trades-USDC.
The confidence in the stable coin supported by Circle remains strongly struck, since investors continue to go to Tether (USDT), the controversial stable coin, flee, looking for a safety net in the middle of the turbulence.
USDC outflow
The USDC market capitalization decreased from almost $ 57 billion from its all-time high last June by over 42 % to $ 33.2 billion. The downturn was due to a commitment of $ 3.3 billion at Silicon Valley Bank (SVB), which temporarily pressed the token to 88 cents instead of its usual one-dollar price.
The parent company Circle has expanded its relationships with Bny Mellon to help with USDC withdrawal that already offers custody services for their reserves. A few days later, the company announced that "essentially the entire" bar component was transferred to the custodian bank, with the exception of limited funds that are held by transaction bank partners. While these measures helped the token to regain its bond, the massive drains continued.
Since the collapse of SVB on March 10, the net drains of USDC have exceeded USD $ 10 billion. The rival USt, on the other hand, hovers near its record highs of almost $ 80 billion in market capitalization and has reached its most important market share since May 2021. USDT now makes 60 % of all stable coins in circulation
Among other things, Busd suffered a similar fate than his ATH crashed from almost $ 30 billion to $ 7.69 billion. The numbers reflect a decrease of over 67 % in less than four months.
USDC expansion
CIRCLE has pushed for the expansion of USDC over several blockchains. At the beginning of this week, the StableCoin issuer announced the expansion of the token to Cosmos via the noble network.
While the details of the start have not yet been announced, the team behind Noble claims native fiat-supported stable coin that is highly liquid and completely in a network connected to the Cosmos Inter-Blockchain Communication Protocol.
In the announcement, it continues that over 50 IBC-capable blockchains can access the StableCoin for the first time.
"This integration will catalyze hundreds of millions of dollars in Cosmos in the coming months and try to master the challenges that users and application chains face when they interact with bridged assets that come from other ecosystems."
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