thenewscrypto.com
- Circle’s $USDC stablecoin market cap fell $10B to $31B.
- Reportedly, the FTX and $LUNA collapse instilled fear in investors against the crypto market.
The Silicon Valley Bank (SVB) incident happened at a time when the global cryptocurrency market was still recovering from last year’s substantial slump. This is when the massive outflow of $USDC began.
The FTX exchange and the TerraUSD and $LUNA collapse instilled fear in investors against the crypto market. This has been part of the reason many investors have continued to withdraw from $USDC despite the stablecoin recovery and re-pegging.
Recently, Investors’ concern about the cryptocurrency industry was fostered by the FTX exchange. Due in part to this, despite the stablecoin rebound and re-pegging, many investors have continued to pull funds out of $USDC.
After the demise of SVB, Circle’s market capitalization plummeted by more than 10% as the stablecoin market cap dropped. From about $40 billion in late February to as little as $31 billion as of March 30. And also the decrease in $USDC’s valuation in the marketplace is not an indication that investors have lost interest in stablecoins in general. Amid the uncertainty, Tether’s USDT, another stablecoin, and competitor to $USDC, has absorbed the large outflow from $USDC to its market value.