According to data from Nansen, the USDC stablecoin has seen net redemptions of almost $1 billion since yesterday morning. This is due to the closure of Silicon Valley Bank, one of Circle’s banking partners.
After Silicon Valley Bank’s Closure, USDC Stablecoin has Experienced $1 billion in Net Redemptions
Nansen said that over $1.6 billion worth of USDC was burned by Circle on Friday. Also, Nansed added that removing them from circulation as investors redeemed dollars. Although considerably less than it destroyed, Circle also produced new coins, increasing the total supply.
According to information from CoinMarketCap, USDC’s market value subsequently decreased from $43.5 billion on Friday to $42.4 billion. At the time of writing on 11.03.2023, USDC’s market capitalization fell as low as $37.3 billion. Moreover, USDC de-pegged from $1 as a result of concern over the condition of its reserves.
About USDC
The second-largest stablecoin, after Tether’s USDT, is USDC, and it serves as the foundation of the cryptocurrency industry. According to Circle’s website, the token’s value is supported by U.S. government bonds and cash-like assets, including a total of $11.1 billion in cash deposits at various licensed institutions.
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