- Coinbase and Binance both suspended USDC conversions due to volatile market conditions.
- Circle revealed that $3.3 billion of USDC reserves remain at Silicon Valley Bank (SVB).
- DAI, the decentralized stablecoin of MakerDAO, reached its lowest value ever at 0.88 cents.
Silicon Valley Bank Collapse
On Saturday, March 11, during Asian afternoon hours, DAI, the decentralized stablecoin of MakerDAO, reached its lowest value ever at 0.88 cents. This was in response to news that crypto firm Circle had revealed that $3.3 billion of USDC reserves remain stuck in Silicon Valley Bank (SVB) after the bank was placed into federal receivership and b both deposits and withdrawals ceased. Coinbase and Binance both suspended USDC conversions due to volatile market conditions while other crypto firms hurt by the SVB collapse included BlockFi, Circle and Avalanche. Tether surged momentarily on news it is unaffected by SVB.
USDC Depegging from Dollar
USDC lost 14 cents from its $1.00 peg tumbling to as low as .86 cents overnight following the news about SVB’s collapse. Nic Carter commented on this event saying it was „Operation Choke Point 2.0“ a remnant from Obama-era Justice department policy which placed restrictions on certain industries including online gaming and cryptocurrency businesses back in 2013-2014 . It was also noticed that 12 days ago Gregory Becker, CEO of Silicon Valley Bank sold 11% of his shares prior to this incident occurring adding further speculation as to what may have caused the bank’s downfall..