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.
USDC Market cap chart (source: CoinMarketCap)
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.