On-Chain Data Reveals How Trading Firms Worked the USDC Stablecoin Repeg – Cryptonium


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On-Chain Data Reveals How Trading Firms Worked the USDC Stablecoin Repeg

The crypto market experienced a wave of panic over the weekend when Circle, the company that issues USD Coin (USDC), revealed it had $3.3 billion in exposure to Silicon Valley Bank (SVB). SVB was shuttered by regulators on Friday, causing USDC to slump from its 1:1 peg with the dollar and trade at $0.88.

Trading firms were quick to jump on this opportunity as investors began withdrawing stablecoins from centralized exchanges and swapping tether (USDT) for USDC on decentralized exchanges such as Curve which saw an unbalanced pool of three equally weighted stablecoins caused by a surge in demand for USDC tokens. Binance also reported its highest volume of stablecoin outflows since November’s FTX collapse with more than $2.8 billion worth of USDT withdrawn within 24 hours alone according to Crypto Qua data analysis firm .

This sudden shift has presented traders with an interesting trading opportunity – however caution should be exercised given how quickly markets can move due volatility levels often seen during periods like these where uncertainty is high . It will be important for traders monitor developments closely so they can adjust their positions accordingly if needed but overall , this could prove beneficial for those looking capitalize off short-term gains or hedge against losses elsewhere .

Cryptonium Editors