Justin Sun traded USDC fear after SVB collapse

At the height of USD Coin (USDC) panic — when news broke that much of its backing was stuck in recently-collapsed Silicon Valley Bank — Tron (TRX) founder Justin Sun traded millions of USDC.

Timeline of Usd-coin

Circle's USDC stablecoin briefly de-pegged after news that $3.3 billion of its cash reserves were stuck with collapsed bank Silicon Valley Bank. USDC's dollar peg has since recovered, but mass redemptions have led to a drop in the stablecoin's market cap by nearly 10% since March 11.

Data shows Tether USD (USDT) has benefited from the recent chaos with the USD Coin (USDC) peg, as the stablecoin's dominance has now hit 57.8%. Tether (USDT) Dominance Has Surged To 57.8% Now As per the latest weekly report from Glassnode, Tether was previously facing a structural decline since mid-2020.

Crypto-friendly Xapo bank has allowed GBP and USDC stablecoin payments for its customers after earlier suspending services for the two currencies due to the continuing financial crisis.

The depegging of USD Coin (USDC) and Dai (DAI) from the US dollar resulted in more than $2 billion in loan repayments on decentralized lending protocols Aave and Compound, with borrowers saving a total of over $100 million. USDC and DAI started heading back toward their peg, and repayment activity tapered off in the following days.

Circle USDC News: In the wake of the devastating effect the failure of Silicon Valley Bank and Signature Bank had on the US markets, Circle CEO Jeremy Allaire gave the latest update on the state of affairs. The crypto market went bullish this week as the SVB related contagion spread through the US financial sector.

As investors sought safety in the wake of Silicon Valley Bank's (NASDAQ: SIVB) collapse this week, the total Tron (CRYPTO: TRX) stablecoin market cap saw a significant increase, while the Ethereum (CRYPTO: ETH) stablecoin market cap fell.  What Happened: Data from DeFilama shows that Justin Sun-owned Tron reached over 50% levels of the total circulating stablecoins on Ethereum.

Circle The CEO of USDC, Jeremy Allaire, stated on Twitter that the organization's reserves are “safe and secure,” and that liquidity activities will continue when U.S. banks open on Monday.

After assurance from CEO Jeremy Allaire that its reserves are secure and the company has new banking partners lined up for “banking open tomorrow morning,” Circle's stablecoin USD Coin (USDC) is climbing back to its $1 peg. The value of USDC is currently $0.99, up 3.3% over the last day, according to data from CoinGecko.

All cryptocurrencies' market capitalization has surpassed $1 trillion once again. The damaged cryptocurrency market turned green after a joint statement from the Federal Reserve, U.S. Treasury, and FDIC stated that all depositors of the now-shuttered Silicon Valley Bank and Signature Bank will be allowed to get their monies out on Monday.

Massive redemptions for Circle's USDC stablecoin continued on Monday, March 13, after the weekend panic and de-peg in the stablecoin. As per blockchain researcher Nansen, over $1.74 billion of USDC stablecoins were redeemed on Monday.