DappRadar reported that Circle, the issuer of USD Coin (USDC), suffered a significant blow due to the decline of SVB. On March 11th, USDC broke its peg to the US dollar and reached an all-time low after Circle disclosed that almost $3.3 billion, or 8% of its $40 billion reserves, were locked up at SVB.
The USDC stablecoin depeg caused panic in the crypto community and a drop in its price and supply. US regulators intervened to support affected depositors and institutions, resulting in USDC regaining its peg but still experiencing a significant drop in supply and market capitalization. Other stablecoins such as TUSD and DAI saw significant supply growth during the same period.
"The fall of SVB serves as a reminder of the potential risks involved in the crypto industry and the importance of risk management." DappRadar wrote in the report.