Crypto Platform Huobi Exchanged $100,000,000 USDC For DAI During Stablecoin Depegging Scare: On-Chain Data
Crypto exchange Huobi converted $100 million worth of USD Coin (USDC) into Dai (DAI) as uncertainty spread in the stablecoin market this weekend, data from the chain shows.
According to blockchain tracking firm Lookonchain, Huobi made the large transaction early Saturday morning.
“It appears that one of Huobi’s wallets also exchanged 100 million USDC for 100 million DAI.”
Lookonchain also discovered Tron (TRX) founder and crypto billionaire Justin Sun, who backs Huobi, withdrew USDC from Ethereum-based lending platform Aave (AAVE) and traded it for DAI.
“Justin Sun withdrew 82 million USDC from Aave and exchanged for 82 million DAI.”
The moves come as crypto markets faced yet another stablecoin scare.
The USDC lost its peg to the US dollar following the news that Circle, the stablecoin issuer, had $3.3 billion of its $40 billion in reserves locked up in Silicon Valley Bank (SVB), a collapsed bank that is now under the control of the Federal Deposit Insurance Corporation (FDIC) . DAI also lost its link as it is partially backed by the USDC.
USDC traded as low as $0.87 while DAI retreated to a 24-hour low of $0.89.
The depegging triggered more than $7 billion wiped off the USDC’s market value, prompting traders and whales to make big moves to reduce risk or take advantage of arbitrage opportunities.
Lookonchain also discovered a whale that made a seven-figure profit by borrowing USDT, which did not lose its peg, to buy up USDC at a cheaper price in the hope of returning the loan after USDC already reverted to its dollar peg.
“Whale CZSamSun buys USDC for arbitrage!
Deposited stETH and ETH to Aave and InstaDapp, borrowed USDT to buy USDC.
So far exchanged 28,577,700 USDT for 29,961,238 USDC.
Over $1.3 million in profit as USDC returns to the link!”
At the time of writing, both USDC and DAI have yet to restore their desired link. Both stablecoins are trading at $0.94.
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