Of the ten most traded stablecoins in the market after the Silicon Valley Bank crisis, only Tether can maintain its stable value.
Tether Becomes the Only Stablecoin to Survive
According to CryptoSlate data, nine of the top 10 stablecoins by market capitalization were damaged by the de-peg caused by the March 11 drop in Circle’s USDC stablecoin, while Tether’s USDT managed to survive.
Recently, after USDC revealed that Circle held an average of $3.3 billion in cash reserves at the collapsed Silicon Valley Bank, the crisis began for almost all stablecoins in the cryptocurrency industry.
Struggling for Stability
At the time of writing, the vast majority of stablecoins are trading below their stable value, with USDC losing the most value at 10%. It is currently trading at an average price of $0.917.
According to some traders and analysts, the effect of panic selling on the current price formation is high, and depending on the previous FDIC cases and the nature of Circle’s deposits, it is thought that the issue will be resolved quickly in the coming period.
DAI
One of the most affected stablecoins after the SVB crisis was the decentralized stablecoin DAI. After the crisis, DAI’s price is trading at an average of 0.936 at the time of writing.
GUSD
Due to the crisis, GUSD fell to 0.96 levels in a certain period, but as of the date of writing, it is trading at an average of 0.988.
BUSD
On the BUSD side, Binance’s stablecoin, the price is trading just below its stable value at the time of writing ($0.9988).
Tether Unaffected
Tether’s USDT was the only stablecoin that remained unaffected after the crisis. At the time of writing, Tether is trading at 1.01, slightly above its stable value. Investors exiting other stablecoins, such as USDC, can be interpreted as buying USDT to a large extent.
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