coindesk.com
As the market continues to digest the impact of the sudden collapse of tech-focused Silicon Valley Bank, days after Silvergate went into voluntary liquidation, algorithmic stablecoin $DAI has been knocked off its peg and has hit an all-time low of 0.88 cents.
$DAI is currently trading at 0.90 cents according to CoinGecko data.
$DAI is an algorithmic stablecoin that is collateralized by holdings from MakerDAO which includes $USDC. Traders are speculating that Circle, which issues $USDC, has worse exposure to Silicon Valley Bank than the $3.3 of the $40 billion backing $USDC it disclosed.
On-chain data from Dune shows that $563 million of $DAI was burnt in the last 24 hours. In total, the stablecoin has a market cap of $4.9 billion.
Curve 3pool’s liquidity pool has also been hit as traders flee $USDC. As of Saturday afternoon Hong Kong Time, the pool’s share of $USDT has shrunk to less than 1.5%. Earlier this week it was split evenly between $USDT, $USDC, and $DAI as is supposed to occur.
Meanwhile, Tron’s USDD has also been knocked off its peg and is down to 93 cents. Tether remains pegged at $1.