In three days users got rid of $3 billion of USDC stablecoin

In three days users got rid of $3 billion of USDC stablecoin

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Author: Robert Strickland (crypto expert)
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In three days users got rid of $3 billion of USDC stablecoin
In three days, from March 13 to 15, users got rid of $3 billion worth of USD Coin Stablecoin (USDC)
Circle noted that it has almost completely fulfilled all the requests for issuance and redemption of USDC

Over three days, from March 13 to 15, users redeemed $3 billion worth of USD Coin Stablecoin (USDC). Circle, the token issuer, reported that it redeemed $3.8 billion worth of USDC during that period and issued $800 million worth of USDC.

On March 11, the rate of the second most capitalized stablecoin USDC lost its peg to the U.S. dollar and fell to $0.87 after news of the closure of Silicon Valley Bank (SVB). The latter blocked $3.3bn of Circle funds, which were used to secure the USDC. That's almost 8% of the total amount of the asset's collateral (about $40 billion).

On the morning of March 13, Circle announced that the risk of losing the blocked assets in SVB had been removed. Amid this news and the government's announcement of refunds to all depositors, USDC regained its peg to the dollar and rose to $0.98-0.99. The assets were accessed on March 13 with the start of the U.S. banking day, after which users began actively disposing of the token.

"As of the end of the U.S. banking day on Wednesday, March 15, we had almost fully satisfied all requests for USDC issuance and redemption," the company said in a statement.

Circle also said it has begun working with a new banking partner for transfers in the U.S. and 19 other countries and plans to reopen some other services on March 16.

Since March 11, when USDC lost its peg to the U.S. dollar, its market capitalization has fallen from $42 billion to $37.5 billion.

Against the backdrop of USDC's difficulties, TrueUSD's stablecoin supply has increased substantially. It doubled in three weeks, with TUSD token trading volumes rising 24%. This was facilitated by the support of leading cryptocurrency exchanges: Huobi and Binance introduced zero commissions for trading this stablecoin.

 

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