USD Coin (USDC) lost its $1 peg to the USD, trading to low as 81.5 cents on Mar. 11. Meanwhile, trackers indicate that Circle, the issuer of USDC, has burned $2.34b in the last day to meet increasing redemption requests.
$2.34b in USDC already burned
Circle’s USDC, the second-largest stablecoin by market cap, has come crashing down due to the failure of Silicon Valley Bank (SVB). The company, Circle, has since disclosed that $3.3b of their $40b reserves were still locked at the bank. Hence it brought about a lot of fear, uncertainty, and doubt (FUD) in its reserve status.
According to Nansen data, Circle burned $2.34b in USDC in the past 24 hours as investors rushed to reclaim their assets as the stablecoin lost his peg. Notably, about 70%, or $1.65b in USDC, was burned in the last eight hours.