Since March 10, Circle, the co-issuer of the USD Coin (USDC) stablecoin, has redeemed approximately 6.2 billion coins, according to data from the Arkham analytical platform.
The stablecoin operator also issued about 1.66 billion USDC. Therefore, the supply of the asset decreased by 4.5 billion USDC.
On March 11, the stablecoin lost its peg to the US dollar. This came amid Circle’s admission that part of the $3.3 billion in reserves was held in the Silicon Valley Bank (SVB), which was shut down by the authorities.
The company immediately assured that they were using corporate funds and external capital to support the stablecoin.
On Monday, it became known that the company, like other SVB contributors, received full access to the funds.
“While Circle has launched the repayment and guaranteed the fulfillment of obligations on time, it seems that USDC holders are still nervous about the situation that has arisen,” — noticed research director at The Block Research Steven Zhang.
The stablecoin market supply is back to 2021 levels, according to CoinGecko.
Recall that due to the USDC depeg, a number of algorithmic stablecoins like DAI and FRAX lost their peg to the dollar.
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Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
Since March 10, Circle, the co-issuer of the USD Coin (USDC) stablecoin, has redeemed approximately 6.2 billion coins, according to data from the Arkham analytical platform.
The stablecoin operator also issued about 1.66 billion USDC. Therefore, the supply of the asset decreased by 4.5 billion USDC.
On March 11, the stablecoin lost its peg to the US dollar. This came amid Circle’s admission that part of the $3.3 billion in reserves was held in the Silicon Valley Bank (SVB), which was shut down by the authorities.
The company immediately assured that they were using corporate funds and external capital to support the stablecoin.
On Monday, it became known that the company, like other SVB contributors, received full access to the funds.
“While Circle has launched the repayment and guaranteed the fulfillment of obligations on time, it seems that USDC holders are still nervous about the situation that has arisen,” — noticed research director at The Block Research Steven Zhang.
The stablecoin market supply is back to 2021 levels, according to CoinGecko.
Recall that due to the USDC depeg, a number of algorithmic stablecoins like DAI and FRAX lost their peg to the dollar.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
