CryptoCompare investigates how the USDC behaved after the collapse of SVB.
Despite the short-term liquidity crunch, Circle's stablecoin maintained positive fund flows.
Centralized
exchange trading volumes for the USDC/USDT stablecoin pair surged 828% to
$6.1 billion on 11 March 2023, as investors sought to switch from USDC to other tokens after the fallout of Silicon Valley Bank (SVB) in which Circle,
the stablecoin issuer, held $3.3 billion of reserves.
USDC Faced Depeg After SVB
Collapse
According
to the newest market analysis published by CryptoCompare, the collapse of SVB has lifted
the trading volume of the popular stablecoin, including decentralized
exchanges. Additionally, CryptoCompare reported an increase in USDC trading against the
US dollar.
SVB was
shut down by the California Department of Financial Protection and Innovation
on 10 March without any apparent reason for the sudden move. Reports suggest
that the bank was facing severe liquidity problems and was on the verge of
collapse. It emerged that the issuer of the USDC stablecoin, Circle, holds $3.3
billion (8%) of the funds backing the USDC in SVB.
The event
triggered a market panic, leading investors to sell off their USDC tokens and
switch to other commonly used stablecoins or the US dollar. Consequently, the
stablecoin's value disconnected from its fixed exchange rate with the USD. At
its lowest point, USDC traded for only 88 cents during the Saturday session.
However, the situation stabilized on Monday, and the exchange rate has now
reached $0.9994.
USDC's Peg Falls to an All-Time Low of $0.8726. Source: CryptoCompare
A study
by CoinGecko showed that USDC supply dropped 9% amid the SVB crisis, while TUSD and
DAI stablecoins gained the most traction. Their market supply rose by 57.4% and
27.4%, accordingly. DAI saw the most significant gain in interest with an
increase of 1.35 billion in absolute terms. At the same time, USDT, TUSD, and FRAX followed
with supply growth of 0.94 billion, 0.73 billion, and 0.69 billion,
respectively.
High USDC Volatility and a Visible
Jump in Trading Volumes
"On 11
March, USDC-USDT centralized exchange trading volumes soared 828% to $6.1bn, as
market participants looked to flee USDC and migrate to a 'safer' stablecoin.
Moreover, the USDC-USD trading pair saw a substantial increase in trading volume
during this time," CryptoCompare commented in its report.
There was a
significant increase in decentralized exchange (DEX) volumes as well, from
$7.14 billion on 10 March to $25.0 billion on 11 March, indicating a 249%
surge. Alongside this, Ethereum gas fees observed a new high in 2023, reaching
101 Gwei, as there was an uptick in blockchain network activity.
Despite the
temporary collapse of the market and its liquidity, there were no negative USDC
outflows from traditional cryptocurrency exchanges. Ultimately, the overall fund
flows turned positive for Circle's stablecoin.
"We
attribute this to some traders trying to make arbitrage profit from the USDC
peg as seen when analyzing trades using CryptoCompare trade data,"
CryptoCompare explained.
CryptoCompare's
analysis concludes that recent events have shown that crypto is still heavily
dependent on traditional finance, exposing the fragility of centralized
stablecoins. Circle has proven to effectively manage its collateral reserves,
which is essential for long-term confidence in its ability to navigate
potential issues with traditional banking.
However, the
collapse of SVB highlights the impact of the Federal Reserve's (Fed) interest
rate hikes on the financial system, which has caused a Fed-induced crisis due
to "inaccurate interest rate forecasts" and "the fastest
interest rate hikes" in US monetary history.
Centralized
exchange trading volumes for the USDC/USDT stablecoin pair surged 828% to
$6.1 billion on 11 March 2023, as investors sought to switch from USDC to other tokens after the fallout of Silicon Valley Bank (SVB) in which Circle,
the stablecoin issuer, held $3.3 billion of reserves.
USDC Faced Depeg After SVB
Collapse
According
to the newest market analysis published by CryptoCompare, the collapse of SVB has lifted
the trading volume of the popular stablecoin, including decentralized
exchanges. Additionally, CryptoCompare reported an increase in USDC trading against the
US dollar.
SVB was
shut down by the California Department of Financial Protection and Innovation
on 10 March without any apparent reason for the sudden move. Reports suggest
that the bank was facing severe liquidity problems and was on the verge of
collapse. It emerged that the issuer of the USDC stablecoin, Circle, holds $3.3
billion (8%) of the funds backing the USDC in SVB.
The event
triggered a market panic, leading investors to sell off their USDC tokens and
switch to other commonly used stablecoins or the US dollar. Consequently, the
stablecoin's value disconnected from its fixed exchange rate with the USD. At
its lowest point, USDC traded for only 88 cents during the Saturday session.
However, the situation stabilized on Monday, and the exchange rate has now
reached $0.9994.
USDC's Peg Falls to an All-Time Low of $0.8726. Source: CryptoCompare
A study
by CoinGecko showed that USDC supply dropped 9% amid the SVB crisis, while TUSD and
DAI stablecoins gained the most traction. Their market supply rose by 57.4% and
27.4%, accordingly. DAI saw the most significant gain in interest with an
increase of 1.35 billion in absolute terms. At the same time, USDT, TUSD, and FRAX followed
with supply growth of 0.94 billion, 0.73 billion, and 0.69 billion,
respectively.
High USDC Volatility and a Visible
Jump in Trading Volumes
"On 11
March, USDC-USDT centralized exchange trading volumes soared 828% to $6.1bn, as
market participants looked to flee USDC and migrate to a 'safer' stablecoin.
Moreover, the USDC-USD trading pair saw a substantial increase in trading volume
during this time," CryptoCompare commented in its report.
There was a
significant increase in decentralized exchange (DEX) volumes as well, from
$7.14 billion on 10 March to $25.0 billion on 11 March, indicating a 249%
surge. Alongside this, Ethereum gas fees observed a new high in 2023, reaching
101 Gwei, as there was an uptick in blockchain network activity.
Despite the
temporary collapse of the market and its liquidity, there were no negative USDC
outflows from traditional cryptocurrency exchanges. Ultimately, the overall fund
flows turned positive for Circle's stablecoin.
"We
attribute this to some traders trying to make arbitrage profit from the USDC
peg as seen when analyzing trades using CryptoCompare trade data,"
CryptoCompare explained.
CryptoCompare's
analysis concludes that recent events have shown that crypto is still heavily
dependent on traditional finance, exposing the fragility of centralized
stablecoins. Circle has proven to effectively manage its collateral reserves,
which is essential for long-term confidence in its ability to navigate
potential issues with traditional banking.
However, the
collapse of SVB highlights the impact of the Federal Reserve's (Fed) interest
rate hikes on the financial system, which has caused a Fed-induced crisis due
to "inaccurate interest rate forecasts" and "the fastest
interest rate hikes" in US monetary history.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
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Watch the full review to see whether Blueberry’s trading setup aligns with your experience level, strategy, and risk tolerance.
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#Blueberry #BlueberryMarkets #BrokerReview #ForexBroker #CFDTrading #OnlineTrading #FinanceMagnates #TradingPlatforms #MarketInsights
In this video, we take an in-depth look at @BlueberryMarketsForex , a forex and CFD broker operating since 2016, offering access to multiple trading platforms, over 1,000 instruments, and flexible account types for different trading styles.
We break down Blueberry’s regulatory structure, including its Australian Financial Services License (AFSL), as well as its authorisation and registrations in other jurisdictions. The review also covers supported platforms such as MetaTrader 4, MetaTrader 5, cTrader, TradingView, Blueberry.X, and web-based trading.
You’ll learn about available instruments across forex, commodities, indices, share CFDs, and crypto CFDs, along with leverage options, minimum and maximum trade sizes, and how Blueberry structures its Standard and Raw accounts.
We also explain spreads, commissions, swap rates, swap-free account availability, funding and withdrawal methods, processing times, and what traders can expect from customer support and additional services.
Watch the full review to see whether Blueberry’s trading setup aligns with your experience level, strategy, and risk tolerance.
📣 Stay up to date with the latest in finance and trading. Follow Finance Magnates for industry news, insights, and global event coverage.
Connect with us:
🔗 LinkedIn: /financemagnates
👍 Facebook: /financemagnates
📸 Instagram: https://www.instagram.com/financemagnates
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🎥 TikTok: https://www.tiktok.com/tag/financemagnates
▶️ YouTube: /@financemagnates_official
#Blueberry #BlueberryMarkets #BrokerReview #ForexBroker #CFDTrading #OnlineTrading #FinanceMagnates #TradingPlatforms #MarketInsights
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👉 Watch the full interview for fundamental insights into the future of trading in Africa.
#Exness #Forex #Trading #SouthAfrica #CapeTown #Finance #FinanceMagnates
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Filmed during the grand opening of Exness’s new Cape Town office, Alfonso sits down with Andrea Badiola Mateos from Finance Magnates to discuss:
- Exness’s marketing approach in South Africa
- What makes their trading product stand out
- Customer retention vs. acquisition strategies
- The role of local influencers
- Managing growth across emerging markets
👉 Watch the full interview for fundamental insights into the future of trading in Africa.
#Exness #Forex #Trading #SouthAfrica #CapeTown #Finance #FinanceMagnates
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Yam Yehoshua, Editor-in-Chief at Finance Magnates, explains the approach: reaching out before publication, hearing all sides, and making careful, case-by-case decisions with balance and responsibility.
⚖ Balanced reporting
📞 Right of response
📰 Responsible journalism
#FinanceMagnates #FinancialJournalism #ResponsibleReporting #FinanceNews #EditorialStandards
Yam Yehoshua, Editor-in-Chief at Finance Magnates, explains the approach: reaching out before publication, hearing all sides, and making careful, case-by-case decisions with balance and responsibility.
⚖ Balanced reporting
📞 Right of response
📰 Responsible journalism
#FinanceMagnates #FinancialJournalism #ResponsibleReporting #FinanceNews #EditorialStandards
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We finish with a look at how he uses AI in his daily workflow — both inside the brokerage and in his own trading.
Here is our conversation with Kieran Duff, who brings a rare dual view of the market as both a broker and a trader at Darwinex.
We begin with his take on the Summit and then turn to broker growth. Kieran shares one quick, practical tip brokers can use right now to improve performance. We also cover the rising spotlight on prop trading and whether it is good or bad for the trading industry.
Kieran explains where Darwinex sits on the CFDs-broker-meets-funding spectrum, and how the model differs from the typical setups seen across the market.
We finish with a look at how he uses AI in his daily workflow — both inside the brokerage and in his own trading.
Why does trust matter in financial news? #TrustedNews #FinanceNews #CapitalMarkets
Why does trust matter in financial news? #TrustedNews #FinanceNews #CapitalMarkets
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📰 Verified reporting
🔎 Human-led scrutiny
✅ Facts over noise
According to Yam Yehoshua, Editor-in-Chief at Finance Magnates, in a world flooded with information, the difference lies in rigorous cross-checking, human scrutiny, and a commitment to publishing only factual, trustworthy reporting.
📰 Verified reporting
🔎 Human-led scrutiny
✅ Facts over noise
