Stablecoin USDC Sees Redemptions Even as Crypto Market Rebounds
- USDC lost its peg to the dollar following collapse of SVB
- The peg has been restored following various assurances
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Crypto market participants redeemed nearly $1.74 billion of the stablecoin USD Coin on Monday, according data compiled by researcher Nansen.
That represents more than 2% of USDC’s circulating supply, Nansen said. The outflows come after the stablecoin lost its 1-to-1 peg with the dollar last week when its issuer, Circle Internet Financial, said it held $3.3 billion — or 8% of reserves supposed to back USDC — at Silicon Valley Bank, which collapsed following a bank run.