The last year has been so insane, do you guys remember the USDC and DAI depeg?
1 min read
It happens earlier this year but i’m sure a lot of us forgot part of it already.
It started with the failure of three US banks — Silicon Valley Bank (SVB), Signature Bank and Silvergate Bank .
USDC depegged by 13% below $1 after it Circle, confirmed that $3.3 billion of cash reserves backing USDC were held at SVB. Do you remember the panic when Coinbase paused conversions between USDC and fiat US dollars? Lol good time.
Both stablecoins recovered to their peg levels because of……. PAPA POW, yes, the Federal Reserve confirmed that it would support the banks’ creditors.
Who was the winner here? USDT. Its value even increased slightly above $1 as market participants rotated out of the affected stablecoins.
It’s easy to forget the stress a lot of people when through, but it wasn’t too long after the UST trauma, look at this chart. Imagine march 10 in the evening with a ** load of DAI. Quite stressful.
submitted by /u/badfishbeefcake
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