The recovery efforts of the U.S. dollar coin (USDC), which has shaken the cryptocurrency market and caused many other stablecoins to lose its dollar stability, continue at full speed. As part of this recovery, large amounts of USDC are being burned. In fact, in the first few hours of the day, one more of these burns was added, with tens of millions of dollars worth of USDC destroyed in a single transaction.
A single transaction destroyed about 724 million USDC
According to data provided by Arkham Intelligence, in a single transaction in the early hours of the day, USDC worth approximately USD 723.6 million was destroyed by approximately USD 723.6 million. The data also shows that USDC was destroyed in multiple separate transactions, ranging in amount from $300 million to $600 million. In this burning, the amount of USDC burned has exceeded 2 billion since this week.
Burning refers to the effective removal of coins or tokens from circulating supply by sending them to wallet addresses not controlled by the organization. USDC burns, on the other hand, occur after a possible drop in reserve backing or redemption. So far, USDC has had a net redemption of more than $4 billion on March 14. This comes after the stablecoin’s issuer, Circle Internet Financial, announced over the weekend that it would process all transactions and satisfy redemptions.
USDC earthquake in the cryptocurrency market
USDC, a stablecoin pegged 1:1 to the U.S. dollar, has yet to restore investor confidence after losing its peg last week. This prevents it from capturing fixed dollars on the target.
The cause of the USDC incident was a statement issued by Circle Internet Financial on March 10. When the company announced that more than $3.3 billion in USDC cash reserves remained at bankrupt Silicon Valley Bank (SVB), investors panicked and rushed to sell their USDC. With this wave of selling, the price fell well below the $1 target level. The price of USDC has dropped to as low as $0.90, according to data from cryptocurrency data platform CoinMarketCap.
As can be seen, the USDC price, which has seen a significant recovery at the time of writing, has reached $0.9985.
Information source: compiled from COIN-TURK by 0x information.Copyright belongs to the author Ömer Ergin, without permission, may not be reproduced