USDC Selling Frenzy Continues: Buterin Takes a Turn

USDC Selling Frenzy Continues: Buterin Takes a Turn

The collapse of Silicon Valley Bank is the largest bank failure since the financial crisis that erupted in 2008. But the crisis has also disrupted the cryptocurrency industry. U.S. Crypto asset firm Circle sent shockwaves through the market when it said it had $3.3 billion trapped in a failed bank.

USD Coin (USDC), a USD-backed stablecoin, has seen a major decoupling after its issuer announced it was setting aside funds at the SVB. USDC price is down more than 10% in the past 24 hours. USDC fell from its peg value of $1 to continue trading at $0.90.

Has USD Coin (USDC) regained Vitalik?

In this time of crisis, Ethereum (ETH) co-founder Vitalik Buterin appears to support depegged stablecoins. The data shows that the wallet address marked Vitalik converts multiple Crypto tokens into USDC.

USDC Selling Frenzy Continues: Buterin Takes a Turn

PeckShieldAlert reported that Vitalik’s token address had deposited 500 Ethereum (ETH) into Reflexer. Then, amid the ongoing crisis, the 150K Rai Reflective Index (RAI) continued to print. However, the address has replaced 132.5k RAI with 378.5K USDC. The remaining 17.5K RAI was exchanged for another de-pegged stablecoin 50K DAI within a few hours.

Previously, Vitalik had expressed optimism about the RAI model. Reflexer (RAI) is an algorithmic stablecoin that is not pegged and only collateralized by Ethereum (ETH).

The Rai reflective index is down 4% in the past 24 hours. At the time of writing, RAI is trading at an average of $2.67. However, 24-hour transaction volume increased by 187% to $1.7 million.

However, institutions holding USDC are selling wildly. According to LookOnChain data, the relevant entities of IOSG Ventures continued to sell 118.73 million USDC in exchange for 105.67 million Tether (USDT). It also contains 2,756 Ethereum (worth about $4 million).

Source of information: Compiled from KOINBOX by 0x Information.Copyright belongs to the author Dilara Avcıoğlu, without permission, may not be reproduced

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