Stablecoins back on track after Biden’s Bank Bailout – What does that mean for Stablecoins
Join Our Telegram channel to stay up to date on breaking news coverage While the entire crypto ecosystem celebrated, saying “we told you so” after the fall of Silicon Valley Bank, which led to Bitcoin gathering major support, stablecoins depegged in a major way, USDC, the world’s largest stablecoin by market capitalization, plunged to $0.87 after it came to light at $3.3 billion of its total $40 billion reserves held by Silicon Valley Bank. The loss of the SVB led to a snowball effect that led to this massive depegging. Another factor to contribute to this was Coinbase, who, as a member of the Center Consortium, announced that it would stop USDC To USD conversion for the weekend. But USDC wasn’t the only unintended victim of this decision. positive and negative market turns to reverberate across the crypto space – which is why stablecoins like DAI, which used USDC as reserves asset, also depegged. However, stablecoins came back to track after the...