USDC Tumbles, Threatening Cryptocurrencies’ Stability
It is reported that according to the latest data of Coinsecko, the market value of USD Coin (USDC), the stable currency of the US dollar, has fallen below US $…
It is reported that according to the latest data of Coinsecko, the market value of USD Coin (USDC), the stable currency of the US dollar, has fallen below US $40 billion, from US $38675180011 at the time of writing. In addition, the USDC is still in the state of anchoring, currently falling to US $0.938306, down 6.3% in the past 24 hours.
The market value of USD Coin fell below $40 billion to $0.938
Analysis based on this information:
The latest data from Coinsecko reveals a decline in the market value of USD Coin (USDC), the widely-used stable coin pegged to the U.S. dollar, to below $40 billion, plummeting from $38, 675, 180, 011. This has raised concerns among investors about the stability of cryptocurrencies.
USDC is an alternative option to Tether, the largest stable coin by market capitalization, currently trading at $60 billion as at the time of writing. The significance of stable coins is immense, given the volatility of cryptocurrencies such as Bitcoin and Ethereum. Stable coins provide a safe haven for investors to protect their value when the market swings significantly. They also serve as an intermediary, allowing traders to convert their cryptocurrencies to a stable coin without necessarily exchanging for a government-backed fiat currency.
USDC uses an anchoring mechanism where for every USDC token issued, reserve funds are held in a bank account to ensure that its value remains at parity with the U.S. dollar. This guarantees that the stability of the token is tied to a stable reserve asset. However, the current drop in USDC value raises questions about the mechanism’s viability, given that it should hold steady to the value of the U.S. dollar.
The decline in the market value of USDC suggests a lack of confidence in the cryptocurrency sector, which is currently experiencing a strong bullish run. The fall also has significant implications for investors’ confidence in the stable coin, leading to a shift in trading volumes to other alternatives. It also highlights the limitations of the anchoring mechanism in assuring stable coin stability at all times, indicating a lack of checks and balances in the digital currency market.
The USDC tumble could also affect trading volumes in the cryptocurrency market, which could subsequently cause more volatility. Given that stable coins are tied to real-world assets and should be immune to the volatility seen in other cryptocurrencies, the current situation raises serious questions about the reliability and functionality of stable coins.
In conclusion, the drop in the market value of USDC calls for a review of the stability of the digital currency market. Cryptocurrency stakeholders and regulators should put in place measures to prevent situations where stable coins fall below their pegged values, which could lead to a loss of confidence in the wider cryptocurrency market.
This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/8189/
It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.
Recommended articles
-
Introduction
According to reports, Aptos has announced the launch of a $20 million artist reward program to encourage artists to use the Aptos blockchain for creative purposes. Creators can sub
-
Skyland Ventures’ Web3 fund completed approximately $38 million fundraising, with SBI Group participating
On April 14th, Japanese venture capital firm Skyland Ventures announced that its Web3 fund, called \”Skyland Ventures No.4 Fund,\” had completed a total fundraising of 5 billion yen
-
Federal Reserve Maester: The Federal Reserve will not take action to launch central bank digital currency
According to reports, Federal Reserve Meister: The Federal Reserve will not take action to launch a central bank digital currency, which requires congressional approval. The United
-
When does eth rise (Will eth rise)?
When did eth rise? According to IMEOS, the Ethereum contract address is 0xd0a7c2
-
RenQ Finance Completes Pre-Sale Round of Financing
According to reports, the liquidity agreement RenQ Finance has announced the completion of a US $2.35 million pre-sale round of financing. Currently, RenQ Finance supports Ethereum, Coin On Smart Chain, and Polygon, allowing users to diversify their investments. （analyticsinsight） Liquidity agreement RenQ Finance completed $2.35 million pre-sale round financing Analysis based on this information:RenQ Finance, a liquidity agreement, has completed a pre-sale round of financing worth US $2.35 million. This news indicates that RenQ Finance is gaining investors’ interest and funds to continue its operations effectively. RenQ Finance is a decentralized finance (DeFi) platform that supports Ethereum, Coin On Smart Chain, and Polygon. It allows users to diversify their investments by supporting various cryptocurrencies, including Bitcoin and Ethereum. RenQ Finance’s pre-sale round of financing is a positive sign that the DeFi platform is gaining traction in the market. The funds raised from the pre-sale round will likely be invested in the development of the platform, improving its existing infrastructure and…
-
Introduction
On April 13th, the 2023 Hong Kong Web3 Carnival \”Global Web3 Payment Innovation Forum\” jointly hosted by Wanxiang Blockchain Laboratory, HashKey Group, and PlatON was officially he
-
Scroll Releases Test Network Version of Ethereum L2 Network on Goerli Test Network
It is reported that Scroll released the test network version of its Ethereum L2 network on the Goerli test network, which is the test phase of transferring zk-…
-
PROOF Launches Web3 Creator Acceleration Program Outliers to Support NFT Creators
On March 25th, PROOF, the parent company of Moonbirds, the NFT project, announced the launch of the Web3 Creator Acceleration Program \”Outliers\” on social media, aiming to support
-
ETH 2.0 surpasses $28 billion in pledges
According to the report, the data shows that the total number of pledges of ETH 2.0 has exceeded 16.6882 million, to 16688231, with a value of about US $28.04 …
-
Blockchain as a Relevant Technology in the Greater Bay Area Cross Border Payment and Settlement System
According to reports, according to a press release from the Hong Kong Special Administrative Region government, the Hong Kong Monetary and Financial Research Center, which is responsible for research work under the School of Finance of the Hong Kong Monetary Authority, has released a financial research report titled “The Greater Bay Area Cross Border Payment and Settlement System: Current Practices and Latest Developments.”. According to the report, as the underlying technology of digital currency, 59% of respondents believe that blockchain is a relevant or highly relevant technology to strengthen financial integration in the Greater Bay Area. Respondents believe that blockchain can be used for multiple operations in cross-border transactions, including ensuring the accuracy and security of cross-border payment and settlement information, customer authentication, and AML/CFT review. In addition, the report also shows that as of the third quarter of 2022, the mBridge project involved more than 160 payment and foreign exchange transactions, with a total amount of over 171 million…
-
Overnight updates on April 17th at a glance
21:00-7:00 Keywords: May interest rate hike, Binance, Bank of England, US SEC commissioner
Overnight updates on April 17th at a glance
I. Introduction A. Importance of financial -
**LockBit Ransomware Attacks Banco de Venezuela: What You Need to Know**
On the morning of April 22nd, Twitter users began discussing how LockBit ransomware broke Banco de Venezuela. Several computer security portal websites have confirmed that there is
-
The Rise of Pendle: Bixin Ventures’ Investment in the DeFi Yield Market
On April 15th, Bixin Ventures posted on social media that it had recently invested in the DeFi yield market agreement Pendle, and the transaction would be completed through OTC. Bi
-
Ethereum Layer2 Arbitrum One: Generating More Daily Fee Income Than Bitcoin
According to reports, independent Ethereum educator Sassal. eth: The daily fee income of Ethereum Layer2 Arbitrum One exceeds that of Bitcoin. Ethereum\’s own handling fee revenue d
-
Why can Bitcoin be traded on a platform
Why can Bitcoin be traded on a platform? Why can Bitcoin be traded on a platform? Today we will talk about why Bitcoin can be a trading platform Firstly, it should be noted that Bitcoin’s trading platform is built to provide services to people through the internet. It is a very convenient and secure choice for users to buy, sell, hold, and transfer digital assets on the platforms they use; At the same time, they can also create value for their own funds and achieve financial freedom. Secondly, as Bitcoin itself is a highly innovative and promising financial product, it is also very attractive for an ordinary investor. However, with the development of technology becoming more and more mature, and the demand of mainstream society for Cryptocurrency is also increasing, so exchanges, as a relatively important Medium of exchange, have become the focus of many people’s attention, because they enable traders to easily access various types of digital assets, thereby…
-
What does “playing btc” mean?
What does \”playing btc\” mean? According to bitcoin news, what does \”playing btc