USDC stablecoin depegging raises concerns among crypto advocates, 5 more stablecoins slide below parity –
On Saturday, March 11th, 2023, crypto advocates are concerned as some stablecoin-Assets have moved away from their $1 parity. The second-largest stablecoin USDC, issued by Circle Financial, fell below $0.90 to hit a low of $0.877 a piece. Additionally, around five other stablecoins fell below US dollar parity during early morning (ET) trading sessions on Saturday.
Major crypto exchanges suspend USDC trades as concerns mount
On March 11th, 2023, stablecoin assets are having a rough day according to Circle Financial announced This $3.3 billion cash backing usd coin (USDC) was held at the Silicon Valley Bank (SVB). This news has caused the USDC to break away from the US dollar, falling to a low of $0.877 per coin on Saturday. As of 7:45 a.m. ET, USDC is currently trading at $0.91 per unit, up 3% from the $0.87 low.
We are temporarily pausing purchases with USDC on Ethereum and polygon. We also stopped loading the BitPay card in the app. More updates will follow here.
— BitPay (@BitPay) March 11, 2023
After USDC was depegged, several major crypto exchanges including Binance and Coinbase suspended USDC trading. “Binance has temporarily suspended the USDC to BUSD auto conversion due to the current market conditions, particularly related to high inflows and the increasing load to support the conversion,” Binance said tweeted. “This is a normal risk management procedure while we monitor the situation.”
coin base specified: “We are temporarily pausing USDC:USD conversion over the weekend while banks are closed. During periods of increased activity, conversions rely on USD transfers from banks, which are processed during normal business hours. When the banks open on Monday, we plan to resume the switchover.” Crypto payment processor Bitpay also has stopped USDC payments and debit card loads.
Singapore-based crypto exchange Crypto.com also suspended USDC deposits on March 11. “As a precaution, we have temporarily suspended USDC to USD conversion, USDC deposit and USDC pair trading due to the current market conditions. USDC withdrawal remains available,” the company said on Saturday. “We will continue to assess the situation and plan to resume USDC trading as soon as possible.”
USDC depegging has caused a ripple effect of depegging issues for five different stablecoin projects including GUSD, DAI, FRAX, USDP and USDD. FRAX is currently trading at $0.91, USDD is trading at $0.94, USDP is trading at $0.95, DAI is trading at $0.92 and GUSD is trading at $0.97 per unit. The largest stablecoin after market capitalization, Tether (USDT)has remained in the $0.99-$1 range since SVB issuance began.
What are your thoughts on the challenges facing stablecoins today? Do share your views on this topic in the comments section below.
photo credit: Shutterstock, Pixabay, WikiCommons
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Source: Crypto News Deutsch
