Nine out of top 10 stablecoins trading below peg as USDC contagion spreads – Tether sole survivor News ▸ Tether · USDC ▸ Stablecoins
Nine out of top 10 stablecoins trading below peg as USDC contagion spreads – Tether sole survivor
As of press time, almost all of the big stablecoins are struggling with maintaining their peg except for Tether's USDT, which is trading slightly above its peg at $1.01.
2 min read
Updated: Jun. 23, 2023 at 10:43 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Nine of the top 10 stablecoins by market cap are trading below their dollar peg as the market reels from the contagion sparked by the depeg of Circle’s USDC stablecoin on March 11, according to CryptoSlate data.
USDC lost its peg after Circle announced that roughly $3.3 billion of its cash reserves were held at collapsed Silicon Valley Bank — sparking unprecedented redemptions as investors traumatized by multiple meltdowns in 2022 began exchanging USDC for other stablecoins and cryptocurrencies.
Stablecoins struggling with stability
As of press time, almost all of the big stablecoins are struggling with maintaining their peg — including Binance’s BUSD, which is trading just below the peg at $0.9988.
The biggest loser is USDC, which has lost almost 10% of its value and is currently trading at $0.917. Circle has tried to assuage fears around a total collapse and said it remains resilient despite its exposure to struggling banks. It has continued to honor 1:1 redemptions so far.
Some traders and analysts surmise that the stablecoin is trading below its actual value even if there was a 0% chance of recovering its deposit. However, the majority sentiment points to a swift resolution of the matter within weeks based on previous cases of FDIC coverage and the nature of Circle’s deposits — with the selloff attributed to panic and trauma.
DAI is the second worst-affected stablecoin and is currently trading at $0.936. Based on on-chain data, roughly $563 million worth of DAI was burned as the stablecoin rout took hold of markets.
GUSD fell to $0.96 at one point but has since recovered to $0.988 as of press time. However, it has yet to reclaim its peg.
Tether unfazed
Tether’s USDT seems unaffected by the current market conditions and is currently trading above its peg at $1.01.
The stablecoin has benefited from the overall selloff, and its dominance is increasing by the minute as investors continue exchanging other coins for USDT.
Most funds also favor USDT, with many exchanging parts of their USDC reserves for USDT. For example, on-chain data shows that Hashed, Spartan Group, and Signum Capital exchanged millions of USDC for USDT following the depeg.
Meanwhile, Jump Trading, Wintermute Trading, Genesis Trading, and BlockTower Capital exchanged millions of USDC for cash through Circle and Coinbase.
Mentioned in this article
USD Coin 
Gemini Dollar 
Dai 
Tether 
Binance USD 
Silicon Valley Bank 
Coinbase 
Jump Crypto 
Wintermute 
Genesis 
BlockTower Capital 
#Hashed Author 
Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
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In this article
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Gemini Dollar
$1.00025
Gemini dollar (GUSD) combines the creditworthiness and price stability of the U.S.
Dai
$0.99985
Dai (DAI) is a cryptocurrency token and operates on the Ethereum platform.
Tether
$0.99938
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Binance USD
$1.00132
BUSD is a stablecoin issued by Paxos in partnership with Binance..
Silicon Valley Bank
Silicon Valley Bank (SVB) is an American commercial bank that is headquartered in Santa Clara, California.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Jump Crypto
Jump Crypto is a division of Jump Trading Group, a research-driven quantitative trading firm and one of the largest traders, by volume, across traditional asset classes.
Wintermute
Wintermute is a global algorithmic market maker in digital assets globally, in CeFi, DeFi, and OTC.
Genesis
Genesis is an institutional digital asset markets and a full-service digital currency prime brokerage providing a single point of access for select qualified individuals and global institutional investors.
BlockTower Capital
BlockTower is a leading cryptoasset investment firm, applying professional trading, investing and portfolio management to an emerging digital asset class..
#Hashed
Hashed is the largest crypto assets fund, project accelerator and community builder based out in South Korea and San Francisco.