2024

USDC

Coin

<p>The USDC lost its peg to the dollar yesterday. Instead of trading at 1 dollar, this stablecoin from Circle saw its value drop to an alarming level on Binance. This created a situation of panic within the crypto community.</p> 
<h2 id="h-the-crypto-usdc-dropped-to-0-74">The crypto USDC dropped to $0.74</h2> 
<p>In mid-August, <strong>the USDT suffered a de-peg</strong> resulting in <a href="https://www.cointribune.com/en/crypto-lusdt-va-de-mal-en-pis-2/" target="_blank" rel="noreferrer noopener">an exchange price of $0.9988</a>. It wasn’t the first time that the stable, or stablecoin, of Tether <strong>could not maintain the 1:1 ratio with the US dollar</strong> during the same month. And this lasted until September.</p>
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<p>Why has the USDT become an <strong>“unstablecoin”?</strong> Among other causes, analysts have pointed to <strong>a massive liquidation on major cryptocurrency exchanges</strong>. Some even went as far as to accuse Binance and Changpeng Zhao of foul play against Tether.</p> 
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     <p lang="en" dir="ltr">Circle's <a href="https://twitter.com/search?q=%24USDC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$USDC</a> stablecoin momentarily lost its peg, spiking to as low at $0.74, on three occasions today following a marketwide sell-off spurred by a report casting doubt whether a spot <a href="https://twitter.com/hashtag/bitcoinETF?src=hash&amp;ref_src=twsrc%5Etfw">#bitcoinETF</a> will be approved this month.<a href="https://t.co/RTYwlWKMs3">https://t.co/RTYwlWKMs3</a></p>— CoinDesk (@CoinDesk) <a href="https://twitter.com/CoinDesk/status/1742692492053495857?ref_src=twsrc%5Etfw">January 3, 2024</a>
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  USD Coin dropped to a very low level yesterday, January 3
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<p>According to <a href="https://www.coindesk.com/markets/2024/01/03/usdc-stablecoin-momentarily-depegs-to-074-on-binance/?utm_campaign=coindesk_main&amp;utm_medium=social&amp;utm_content=editorial&amp;utm_source=twitter&amp;utm_term=organic" target="_blank" rel="noreferrer noopener">CoinDesk</a>, the USDC stablecoin momentarily lost its 1:1 parity with the dollar three times yesterday, January 3.</p> 
<p>Here are some details about these depegs: from 12:10 to 12:21 UTC, <strong>the USDC dropped to $0.74, $0.80, and $0.79.</strong> This was evidenced by comparing it to its trading pair USDT on the cryptocurrency exchange platform Binance.</p> 
<p>And that’s not all: the market depth of 2% for the USDC/USDT trading pair was biased upwards on Binance. This led to <strong>staking orders of $26 million up to $1.02</strong> and $6.1 million of orders staked up to $0.98.</p> 
<p>In other words, when a trader places a sell order greater than $6.1 million, the price of the USDC would drop below $0.98. However, the volume was valued at $6.2 million at 12:10 UTC and $4.3 million at 12:21 UTC.</p>

Crypto: General Panic Following the USDC De-Peg by Circle

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