Daily Hot Token — USDC
During the weekend, rumors that regulators might consider safeguarding all uninsured deposits at Silicon Valley Bank (SVB) gave significant relief to the investors, leading to a strong rebound of the broader crypto market over the weekend. In addition, the news that Circle pledged to cover a shortfall in $3.3 billion of reserves held at SVB also soothed some concerns. Today's hot token is USDC, which is re-pegging following a drop to a historic low of 0.875 per US dollar.
Issued by Circle Internet Financial, USDC is the second-largest stablecoin by market capitalization. As a fully collateralized stablecoin, USDC has seen the resilience of its peg with USD, regardless of in a bull or bear market. The fallout of Silverbank and SVB initially did strike a major blow to the stablecoin until Circle announced its $3.3 billion exposure to SVB. The risk exposure took up approximately 8.25% of its total market capitalization and was unlikely to have them fully recover from SVB. The sentiment saw a major turnaround as FDIC considers protecting the uninsured portion of the SVB deposits and Circle having pledged to absorb the losses. Nonetheless, no official announcement has been made in regards to the rumored protection as of the time of writing, whereas investors should be cautious of Circle’s capability to cover the large hole by itself.
Check Out the Latest Prices, Charts, and Data Here!
Talk of the Town
Starbucks Odyssey releases its first limited edition NFT collection on Polygon. Starbucks announced its web3 loyalty program in late 2022 and recently launched its first NFT collection to invited members, dubbed “The Siren Collection”. Members complete tasks or in-store purchases to earn stamps, each of which represents one of the 2000 pieces collection and can be re-sold in the secondary NFT marketplace Nifty Gateway.
Check out what else is buzzing in the crypto scene today:
Circle Internet Financial is racing to find new banking partners for its USDC stablecoin. (Link)
Silicon Valley Bank Depositors Will Have Access to 'All' Funds Monday, Say Federal Regulators. (Link)
