USDC Crash News: Silicon Valley Bank’s failure has proven to be the largest bank failure since the start of the financial crisis in 2008. But this turmoil has also benefited the bitcoin sector. The collapse of the bank was revealed to have $3.3 billion in it by the American digital asset firm Circle, shocking the market to its core.
A significant depegging event was recorded by Dollar Circle (USDC), a stablecoin backed by the dollar, after its issuer revealed assets were held in the SVB. In the previous day, the price of USDC fell by more than 10%. USDC fell from its $1 fixed value and eventually traded at $0.90.
in the midst of this catastrophe. Vitalik Buterin, a co-founder of Ethereum, appears to be in favour of the depegged stablecoin. According to the information, Vitalik’s labelled wallet address changed a number of digital tokens into USDC.
500 Ethereum were put in the Reflexer by the Vitalik branded address, according to PeckShieldAlert. Then, in the midst of the escalating crisis, he proceeded to coin 150K Rai Reflex Index (RAI). Yet the address exchanged 378.5K USDC for 132.5K RAI. Within a few hours, the remaining 17.5K RAI were exchanged for 50K DAI, another depegged stablecoin.
Vitalik previously said that he had high hopes for the RAI approach. An algorithmic stablecoin called Reflexer (RAI) is not pegged and only uses Ethereum as collateral.
In the past 24 hours, the Rai Reflex Index has decreased by 4%. At the time of publication, RAI was trading for an average price of $2.67. Its 24-hour trade volume has increased by 187% to $1.7 million, nevertheless.
