Circle’s USDC Outflows Surpassed $10B Since SVB Collapse, Tether Dominance Rises
Tether (USDT) has emerged as the industry favorite amidst turmoil in USDC. Weeks after the failure of a series of US banks as well as the Credit Suisse chaos, the crypto market has considerably recovered but the same cannot be said for a prominent stablecoin that has served as a backbone for DeFi trades – USDC. The confidence in Circle-backed stablecoin remains severely battered as investors continue to flee to Tether (USDT).
USDC’s market cap was down by over 42% to $33.2 billion from its all-time high of nearly $57 billion last June. The downturn was due to a $3.3 billion exposure to Silicon Valley Bank (SVb), which temporarily dragged the token to 88 cents instead of its usual one-dollar price. Circle, expanded its ties with BNY Mellon to assist with USDC redemption, which already provides custody services for its reserves. A few days later, the firm revealed transferring “substantially all” the cash portion to the custodian bank except for limited funds held at transaction banking partners. While these measures helped the token to regain its peg, the massive outflows continued.
Source
https://t.me/Blockchain_Explained
