USDC Stablecoin Makes a Comeback with Largest Minting in Seven Days
Circle, the second largest stablecoin by market cap after Tether, has produced significant UDSC following the recent drop in value.
The stablecoin, which is designed to remain pegged to the value of the U.S. dollar, fell to $0.87 on March 11 after it was revealed that Circle had exposure to the failed Silicon Valley Bank (SVB).
Circle has regained investor confidence by minting $407.8 million worth of USDC in the past week, marking the largest amount minted in the past seven days.
Circle minted $407.8 million $USDC about 10 minutes ago
This is the largest USDC minting in the last 7 days
Hourly net change: +$463.8 million#NansenQuery pic.twitter.com/WnHr0lsFyy
— Nansen 🧭 (@nansen_ai) March 13, 2023
The move comes at a time when demand for stablecoins continues to grow as more individuals and institutions look for ways to use digital currencies without exposing themselves to the volatility of other cryptocurrencies like Bitcoin.
Additionally, Circle burned $314 million worth of USDC, which can be seen as a way to maintain the coin’s stability and ensure that it remains pegged to the U.S. dollar.
Circle just burned $314 million $USDC 10 mins ago pic.twitter.com/XIbNDnlZJV
— Nansen 🧭 (@nansen_ai) March 13, 2023
Burning coins effectively reduces the supply of USDC in circulation, which can help increase the remaining coins’ value.
READ MORE: Ripple CEO Reveals Impact of Silicon Valley Bank Closure on His Company
Circle joined other companies, calling on the U.S. government to step in and protect SVB. The Federal Reserve Board confirmed that the Federal Deposit Insurance Corporation would protect depositors.
Overall, Circle’s actions demonstrate the ongoing challenges facing stablecoins in the cryptocurrency market. While they offer a more stable alternative to other digital currencies, they are still subject to the same risks as traditional financial instruments, including exposure to the risk of failed banks and other economic shocks.
However, with the growing demand for stablecoins, we will likely see more companies like Circle stepping up to provide solutions that offer stability and flexibility for users.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
