Coinbase (COIN) saw a notable surge in share value at the opening bell on Monday, which goes to show how closely the stock correlates to the larger crypto market.
Just before the weekend, COIN was valued at $62.77, but had dropped to $53.44 by the end of the week. This decrease was due to the news of Silvergate Bank ending its operations on March 8.
At the start of the new trading day, Coinbase joined Bitcoin in its rally, and is now being traded at $58.45 on Nasdaq. This marks a 4% increase in value for the largest American crypto exchange over the past month.
Crypto Market’s Bearish Week
The majority of last week was spent in bearish territory, with Circle’s USDC stablecoin – which is pegged to the dollar – falling by 13% after the Silicon Valley Bank and Signature Bank stopped their services. On Sunday, Coinbase announced it had around $240 million in stored funds with Signature Bank.
In addition, Coinbase is a founding partner of the CENTRE Consortium, which is responsible for issuing and managing the USDC.
The stablecoin plummeted to a record low of $0.87 on Friday, but it appears the situation has improved after the Federal Reserve, U.S. Treasury, and FDIC all assured that depositors would not suffer any losses.
President Biden further clarified that no taxpayer money would be needed to cover any shortfall thanks to the “immediate action” taken by the Treasury.