Cointime

Download App
iOS & Android

SVB’s Collapse Shakes the Stablecoin Market: DappRadar Report

Cointime Official

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.

Source: https://dappradar.com/blog/the-evolution-of-the-dapp-industry-in-response-to-americas-banking-turmoil#Chapter-2

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.

Source: https://dappradar.com/blog/the-evolution-of-the-dapp-industry-in-response-to-americas-banking-turmoil#Chapter-2

"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.

Comments

All Comments

Recommended for you

  • Nigeria accuses Binance of laundering $35.4 million, and a hearing on the detention of Binance executives will be held on April 4

    Nigerian government has accused Binance of money laundering, with an amount involved of $35.4 million. After EFCC submitted documents on Thursday, Binance currently faces two separate criminal charges in Nigeria. The Federal Inland Revenue Service (the country's tax authority) has also accused the exchange of tax evasion. In addition to the criminal proceedings, the Nigerian government is also seeking to extend the detention period for Binance executives. The case will continue with a hearing on April 4.

  • Bitcoin Layer 2 Project Bitlayer Launches $50 Million Ecosystem Incentive Program

    Bitlayer, a Bitcoin Layer2 infrastructure project based on the BitVM paradigm, announced the launch of a $50 million ecological incentive plan to promote the development of its mainnet ecosystem. The first phase of the incentive program, named "Ready Player One," will begin registration at 09:00 UTC on March 29th, 2024 and end at 09:00 UTC on April 29th, 2024, and will officially start after the Bitlayer mainnet is launched. Specific rules and reward allocation guidelines for the event will be disclosed in subsequent announcements. Through the "Ready Player One" and other ecological incentive plans, Bitlayer aims to accelerate ecosystem development and incentivize projects to deploy on the Bitlayer mainnet. In addition, Bitlayer promises comprehensive ecosystem support for all projects, including potential foundation and institutional investment, initial liquidity support, comprehensive product development resources, guidance and investment opportunities from top incubators, support from the Bitcoin community and OGs, ecosystem cooperation, and co-creation.

  • Stablecoin protocol Ethena on BNBChain has been hacked

    The stablecoin protocol Ethena on BNBChain has been hacked, causing a loss of 480 BNB, worth about $290,000, as monitored by PeckShieldAlert.

  • Singapore-based Bitcoin Layer2 Project BEVM Raises Tens of Millions in Seed and Series A Funding

    Singapore-based Bitcoin Layer2 project, BEVM, has completed its seed round and part of its Series A round, raising tens of millions of USD from over 20 investors including RockTree Capital, Waterdrip Capital, and ViaBTC Capital. The project's Series A valuation has reached $200m and aims to accelerate its international development and roll-out. BEVM is an EVM-compatible Bitcoin Layer2 network built on Taproot Consensus, which uses $BTC as gas and aims to bring 10% of $BTC into its Layer2 network environment. The project's mainnet is scheduled to launch on March 28th and has already implemented decentralized Bitcoin cross-chain custody services through Schnorr Signature, MAST, and Bitcoin SPVs.

  • Ethereum on-chain DEX transaction volume exceeded $2.1 billion yesterday

    According to DeFiLlama data, the trading volume of DEX on the Ethereum blockchain on March 28th was 2.111 billion US dollars, ranking first. The daily trading volume of DEX on the BSC chain was 1.398 billion US dollars, ranking second; the daily trading volume of DEX on the Solana chain was 1.097 billion US dollars, ranking third.

  • Taiwan’s Ministry of Interior has approved the establishment of a cryptocurrency industry association

    Taiwan's Ministry of the Interior has approved the application of the local cryptocurrency industry to establish an industry association. The local cryptocurrency industry working group, which was established last year to prepare for the establishment of the industry association, said that the working group now needs to complete all preparations and officially establish the cryptocurrency industry association by the end of June as required by the government. The working group is currently composed of 22 cryptocurrency companies, including Taiwan's major exchanges such as MaiCoin and BitoPro. The working group pointed out that ACE Exchange has been expelled from the group because the troubled exchange is under investigation by prosecutors for improper behavior by its former executives.

  • Grayscale ETH Trust negative premium rate is 22.77%

    According to ChainCatcher news and Coinglass data, the Grayscale Bitcoin Trust Fund (GBTC) has a premium rate of 0.02%. The Grayscale ETH Trust has a negative premium rate of 22.77%, and the ETC Trust has a negative premium rate of 36.58%.In addition, the Grayscale BCH Trust has a premium rate of 238.13%, the LTC Trust has a premium rate of 380.60%, the SOL Trust has a premium rate of 515.93%, the MANA Trust has a premium rate of 726.65%, the LINK Trust has a premium rate of 713.66%, and the FIL Trust has a premium rate of 3057.89%.

  • Net inflows into spot Bitcoin ETFs reached $179 million on March 28

    Spot on Chain, a blockchain data monitoring platform, posted on social media that the net inflow of spot bitcoin ETF on March 28th reached 179 million US dollars, a decrease of 26.9% compared to the previous trading day. After 54 trading days, the total net inflow accumulated to 12.13 billion US dollars, which is the level before the last fully negative trading week. BlackRock's iShares Bitcoin ETF (IBIT) and Grayscale's GBTC both saw a significant slowdown in daily inflows and outflows on March 28th.

  • The Hong Kong Legislative Council plans to review the relevant stable currency consultation and sandbox legislation at the end of this year or next year

    Hong Kong legislator Wu Jiezhuang revealed that Hong Kong will release stablecoin consultation and sandbox (computer security mechanism), which will allow the industry to innovate digital asset projects in the sandbox environment. Relevant legislation will be reviewed in the Legislative Council at the end of this year or next year, which will help the entire digital asset industry ecosystem. Hong Kong has been improving the digital asset (virtual asset) market on different legal levels. Last year, there were regulations on virtual currency trading platforms and issuance systems.

  • The Stablecoin Gateway to Bitcoin Adoption: Part Two

    As mentioned in part one, some of the property advantages of crypto dollars compared to US Dollars in traditional banking systems come from using public settlement networks and personal wallet software. These same advantages apply to (and originated with) bitcoin, namely global access, individual custody, and 24/7 direct transfers.