• USDC stablecoin has experienced significant outflows following the closure of its key reserve banking partner Silicon Valley Bank in March.
• Since March 10, USDC token net outflows have surpassed $10 billion, causing its market capitalization to drop by 23%.
• Tether (USDT) has surged in popularity and market cap as investors have fled to it from other stablecoins, becoming the largest stablecoin in the market with a 60% share among stablecoins.
USDC’s Outflow After SVB Collapse
USDC stablecoin has experienced significant outflows following the closure of its key reserve banking partner Silicon Valley Bank in March. Circle has backed the stablecoin’s value with short-term government bonds administered by BlackRock. As a result, since March 10, USDC token net outflows have surpassed $10 billion, causing its market capitalization to drop by 23%.
Rise of USDT
Tether (USDT) has surged in popularity and market cap as investors have fled to it from other stablecoins. USDT’s market capitalization has grown $8 billion from $71.5 billion to $79.5 billion since March 10th, making it the largest stablecoin in the market with a 60% share among all stablecoins according to DefiLlama data.
Circle Regains Dollar Price Peg
Circle has regained its dollar price peg following the collapse of its banking partner SVB; however, USDC is yet to recover its former market capitalization of $43 billion due to uncertainties in the banking sector and increasing regulatory scrutiny.
New York Regulators Impact Stablecoin Market
The February announcement from New York regulators that they had told Paxos to stop minting Binance USD (BUSD), which was previously third-largest stablecoin by market cap, caused a major reshuffling within the industry as investors sought alternatives such as Tether or TUSD for their investments.
Key Piece Of Crypto Ecosystem Infrastructure
Tether is an important piece of infrastructure for many crypto ecosystems and is widely used for facilitating trades between digital assets on different exchanges quickly and at low cost.