USD Coin (USDC) dropped below 90 cents on Saturday, causing investors to transfer their money to other stablecoins in order to shield their capital.
USDC traded at 87 cents in the Asian morning, reaching an all-time low. It has since bounced back to just over 90 cents during the Asian evening.
Some traders are taking the opportunity to get in on the potentially lucrative situation, buying USDC for the potential 10% increase should the token be able to peg back to the dollar.
Leveraged trading could magnify returns for those hoping for a rebound. Bybit futures funding rates spiked to 0.3% earlier on Saturday, meaning traders made a 0.3% fee on their total market position.
In the past 24 hours, USDC futures were liquidated to the tune of $4 million, according to Coinglass.
Meanwhile, Maker’s decentralized stablecoin dai (DAI) also depegged from its intended $1 mark on Saturday, CoinDesk reported. It touched an all-time low of 88 cents.
The market-wide plunge was caused by the collapse of Silicon Valley Bank (SVB) on Friday, with some of the crypto industry’s major players having exposure to the bank.
Circle, a U.S.-based stablecoin issuer, had 25% of its USDC reserves held in cash at SVB, according to a Jan. 17 attestation. A Circle spokesperson said that SVB was just one of six banks used.
