Cryptocurrency

The total market value of stablecoins in the cryptocurrency space has declined by 1.35% to $133 billion, the lowest in 18 months, amid a US banking crisis that has contributed to the industry's twelfth consecutive month of decline.According to CryptoCompare's latest Stablecoins &amp; CBDCs report, the drop in stablecoin market value was caused by the depeg of numerous stablecoins during the bankruptcy of Silicon Valley Bank, a cryptocurrency-friendly bank that had $3.3 billion in USDC reserves.According to the article, USDC depegged on March 10 after it was discovered that a portion of its reserves were in it, reaching $0.877 on March 11. Stablecoins that use USDC as collateral, such as DAI, MIM, and FRAX, all decreased in value.As a result, stablecoins' market dominance declined from 12.6% to 11.4%, the lowest end-of-month market share since April 2022. According to CryptoCompare, the drop "highlights the surge in the values of crypto assets amid the recent depeg of USDC and other stablecoins." Notwithstanding these drops, stablecoin trade volume hit $51.9 billion on March 14 as USDC and others re-established their peg.They were restored after the Federal Deposit Insurance Corporation (FDIC) intervened and announced that it would reimburse every depositor at SVB, ensuring that the $3.3 billion in USDC reserves were not destroyed.This was the greatest day volume observed since November 10, when FTX plummeted, according to CryptoCompare's report. Interestingly, the research says that TUSD's market value increased by 82.6% in March, hitting $2.04 billion.This spike can be ascribed to Binance's decision to reintroduce TUSD trading pairs on its platform, as well as the conversion of $1 billion from its 'SAFU Fund' in BUSD to TUSD and USDT. Furthermore, TUSD is the only BTC and ETH trading combination on the exchange that charges no fees.Furthermore, while BUSD stopped issuing new tokens and USDC faced uncertainty following the failure of its partner bank, USDT remained the dominant stablecoin. The USDT currently has a market dominance of 57.5%, the highest since June 20, 2021. According to the research, the USDT market cap has climbed by $5.76 billion since the depegging of USDC.

Stablecoins’ Market Capitalization Falls to Lowest Level in 18 Months, Data Shows

ItsBitcoinWorld

Other articles published on Mar 24, 2023

Henry Chang’s 13th WEMIX Purchase Announcement

SEC Drops Bombshell Warning: ‘Proof of Reserves’ Worthless for Crypto Investors

Polygon Price Analysis 24/3: MATIC’s Bullish Rally Continues with Over $40M Network Transactions

Arbitrum (ARB) Airdrop Claim is Live

Indonesia Introducing New Payment System

ArtHouse Spirits DAO – A Project Combining Tokenized Rum with Real Benefits

Join our free newsletter for daily crypto updates!