CDS Crypto News After Silicon Valley Bank’s Closure, USDC Stablecoin has Experienced $1 billion in Net Redemptions
Crypto News

After Silicon Valley Bank’s Closure, USDC Stablecoin has Experienced $1 billion in Net Redemptions

426
After Silicon Valley Bank's Closure, USDC Stablecoin has Experienced $1 billion in Net Redemptions

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.

References

www.coindesk.com

Written by
lectertodd

Lectertodd is 25 years old. She graduated from Çankaya University, Department of Psychology, in 2021. She actively works as a writer, translator, and editor for various websites. Moreover, she loves reading, researching, and learning new things.

Leave a comment

Leave a Reply

Related Articles

Dogwifhat ATH: Dog-Themed Meme Coin Hits $4.01 Today

Together with the Dogwifhat ATH, the Solana-based memecoin has once again defeated...

Bitwise Spot Ether ETF Application: While Ether ETFs Await Approval, A New Player Has Joined the Game

The Bitwise spot Ether ETF application was filed by the company yesterday.

Glif, the Filecoin protocol, plans to distribute 75 million points in anticipation of its token launch

The Filecoin liquid leasing protocol will distribute a total of 75 million...

In the first quarter, losses from crypto hacks and scams amounted to a staggering 336 million Dollars

In the first quarter, the crypto industry faced losses amounting to $336...