stablecoins depeg 10-20% SVB contagion spreads

11 Mar 2023

Hey guys, Silicon Valley Bank contagion is spreading fast,
this resulted in heavy depegs of USDC , DAI, FRAX. 10%-20% losses
currently rebound in progress, but not sure that the worst is over yet.

USDC holds a circulating supply of around 40 .9 billion while its market cap declined to stand at $35.4 billion. The deficit between the dollar pegged value and current standing value is on a stretch as the market is witnessing a high liquidity situation now.

USDC is not the only stablecoin facing depegging troubles amid the contagion. DAI, an Ethereum based stablecoin, dollar pegged value also took a hit. DAI price dropped by 10% over the past day. It is trading at an average price of d $0.924, at the present time.

Overall, not a great looking situation and extreme caution is advised.

So far USDT is not impacted and maintaining it's peg to USDT at 1/1.

USDD which have already seen the depegging related troubles, is also down by around 8% in the last 24 hours. USDD is trading at an average price of $0.93