all about cryptop referances
On Saturday, March 11, 2023, crypto advocates are worried as a few stablecoin assets have pulled away from the $1 parity. The second largest stablecoin USDC, issued by Circle Financial, fell below $0.90, hitting a low of $0.877 per coin. In addition, around five other stablecoins have fallen below US dollar parity during early morning (ET) trading sessions on Saturday.
March 11, 2023 stablecoin assets have a tough day after Circle Financial announced that $3.3 billion of the cash-backing usd coin (USDC) was held at Silicon Valley Bank (SVB). This news has caused the USDC to decouple from the US dollar, falling to a low of $0.877 per coin on Saturday. Starting at. At 7:45 ET, USDC is currently trading at $0.91 per unit, up 3% from a low of $0.87.
We are temporarily stopping purchases with USDC on Ethereum and Polygon. We have also stopped uploads to the BitPay card in the app. Further updates will follow here.
— BitPay (@BitPay) March 11, 2023
Following the depegging of USDC, several major crypto exchanges, including Binance and Coinbase, have suspended USDC trading. “Binance has temporarily suspended automatic conversion of USDC to BUSD due to current market conditions, particularly related to high inflows and the increasing burden to support the conversion,” Binance tweeted. “This is a normal step for risk management to take while we monitor the situation.”
Coin base tired: “We are temporarily pausing USDC:USD conversions over the weekend while the banks are closed. During periods of increased activity, conversions are dependent on USD transfers from the banks that clear during normal banking hours. When the banks open on Monday, we plan to resume the conversions.” Crypto payment processor Bitpay has too put on pause USDC payments and debit card charges.
Singapore-based crypto exchange Crypto.com also suspended USDC deposits on March 11. “Out of an abundance of caution, we have temporarily suspended USDC to USD conversion, USDC deposits and USDC pairs trading due to current market conditions. USDC withdrawals are still available,” the company said on Saturday. “We will continue to evaluate the situation and plan to resume USDC trading as soon as possible.”
The depegging of USDC has caused a ripple effect of depegging issues for five different stablecoin projects, including GUSD, DAI, FRAX, USDP and USDD. FRAX is currently trading at $0.91, USDD is trading at $0.94, USDP is trading at $0.95, DAI is trading at $0.92, and GUSD is trading at $0.97 per unit. The largest stablecoin by market capitalization, tether (USDT), has remained within the $0.99 to $1 range since SVB issuances began.
What are your thoughts on the challenges facing stablecoins today? Share your views on this topic in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or an endorsement or recommendation of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is directly or indirectly responsible for damages or losses caused or alleged to be caused by or in connection with the use of or reliance on content, goods or services mentioned in this article.
