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SVB’s Collapse Shakes the Stablecoin Market: DappRadar Report

Cointime Official

DappRadar reported that Circle, the issuer of USD Coin (USDC), suffered a significant blow due to the decline of SVB. On March 11th, USDC broke its peg to the US dollar and reached an all-time low after Circle disclosed that almost $3.3 billion, or 8% of its $40 billion reserves, were locked up at SVB.

Source: https://dappradar.com/blog/the-evolution-of-the-dapp-industry-in-response-to-americas-banking-turmoil#Chapter-2

The USDC stablecoin depeg caused panic in the crypto community and a drop in its price and supply. US regulators intervened to support affected depositors and institutions, resulting in USDC regaining its peg but still experiencing a significant drop in supply and market capitalization. Other stablecoins such as TUSD and DAI saw significant supply growth during the same period.

Source: https://dappradar.com/blog/the-evolution-of-the-dapp-industry-in-response-to-americas-banking-turmoil#Chapter-2

"The fall of SVB serves as a reminder of the potential risks involved in the crypto industry and the importance of risk management." DappRadar wrote in the report.

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