{"id":77023,"date":"2023-04-11T14:56:54","date_gmt":"2023-04-11T11:56:54","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=77023"},"modified":"2025-09-10T20:50:51","modified_gmt":"2025-09-10T17:50:51","slug":"usdc-supply-stabilises-after-silicon-valley-bank-collapse","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/usdc-supply-stabilises-after-silicon-valley-bank-collapse\/","title":{"rendered":"USDC supply stabilises after Silicon Valley Bank collapse"},"content":{"rendered":"

Following a wave of redemptions of the stablecoin USDC<\/a>, tied to the collapse of Silicon Valley Bank (SVB) and the loss of parity with the dollar, the coin’s supply slowed its decline. The Block reports.<\/p>\n

The total amount of USDC in the Ethereum network stands at just under $31 billion, down $11 billion from the start of the year.<\/p>\n

On March 11, the stablecoin lost its dollar peg after reports<\/a> that Circle, the issuer, held in the failed SVB<\/a> portion of the asset’s reserve of $3.3 billion. Because of the depegging, algorithmic stablecoins DAI and FRAX also lost their dollar peg<\/a>.<\/p>\n

\"Snimok-ekrana-2023-04-11-v-14.04.02\"
Total supply of stablecoins in the Ethereum network. Data: The Block<\/a>.
<\/figcaption><\/figure>\n

Indicators for other Ethereum-based stablecoins, including Binance USD (BUSD) and Gemini Dollar (GUSD), also declined.<\/p>\n

The supply of BUSD fell from $16.5 billion to $7 billion, and GUSD from $575 million to $391 million.<\/p>\n

Likely, the weakening of Binance’s stablecoin positions is tied to regulatory problems. At the end of March, CFTC<\/span> accused the exchange<\/a> of “sham” compliance with U.S. rules on derivatives trading.<\/p>\n

There are also concerns about the state of the Gemini crypto exchange run by the Winklevoss twins. In April, Bloomberg reporters said<\/a> the brothers provided a $100 million loan to their trading platform.<\/p>\n

Tether (USDT<\/a>), by contrast, is showing growth. ERC-20 USDT accounts for 43% of all stablecoins on Ethereum. At the start of the year this figure stood at 32%; over the three months the supply of the stablecoin rose from $32.3 billion to $35.3 billion.<\/p>\n

Against the backdrop of a temporary USDC depeg, the market capitalisation of USDT rose to $74.7 billion<\/a>, nearly twice the value of Circle’s stablecoin.<\/p>\n

According to a recent statement by Tether’s CTO<\/span> Paolo Ardoino, for the first quarter the company expects to report a net profit of $700 million<\/a>, which would lift USDT’s excess reserves to $1.66 billion.<\/p>\n

In March, Circle announced<\/a> plans to launch USDC in the ecosystem Cosmos<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Following a wave of USDC redemptions linked to the SVB collapse and the loss of dollar parity, the coin’s supply slowed its decline.<\/p>\n","protected":false},"author":1,"featured_media":77024,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1625,719,807,1245,910],"class_list":["post-77023","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-binance-usd-busd","tag-gemini","tag-stablecoins","tag-tether-usdt","tag-usdc"],"aioseo_notices":[],"amp_enabled":true,"views":"31","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/77023","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=77023"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/77023\/revisions"}],"predecessor-version":[{"id":77025,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/77023\/revisions\/77025"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/77024"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=77023"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=77023"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=77023"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}