The Supply of Stablecoin USDC Slows Down Decline After Silicon Valley Bank’s Collapse
After a wave of USDC redemptions associated with the collapse of Silicon Valley Bank (SVB) and the loss of parity against the dollar, the supply of the coin has slowed down the decline.
The supply of USDC on the Ethereum network has dropped from $42 billion at the beginning of the year to just under $31 billion following a wave of redemptions associated with the collapse of Silicon Valley Bank (SVB) and the loss of parity against the dollar, reported by The Block.
Other Ethereum-based stablecoins, such as Binance USD (BUSD) and Gemini Dollar (GUSD), have also declined, with BUSD falling from $16.5 billion to $7 billion and GUSD from $575 million to $391 million.
Concerns have arisen in the market concerning the state of Binance, whose CFTC has accused of “fictitious” compliance with US rules regarding derivatives trading, and Gemini, which was reported to have taken out a $100 million loan from its founders, the Winklevoss twins.
