Curve Finance trading volume reaches $7B historic high after USDC depeg
Stablecoin swapping pool Curve Finance is experiencing the highest daily trading volume in its history, exceeding $7 billion in the past 24 hours after the Silicon Valley Bank (SVB) collapse triggered a wave of uncertainty across markets and depegged the USD Coin (USDC) from the U.S. dollar.
Looks like we have the biggest daily trading volume in history
Curve supports liquidity pools for major stablecoins, such as USDC, Tether (USDT), Frax (FRAX), Dai (DAI) and TrueUSD (TUSD). Fear, doubt, and uncertainty have spread across crypto markets during the last few hours, resulting in unbalanced pools in the DeFi platform due to a sell-off of USDC, leading the major stablecoin price to fall below its $1 peg.
USDC is the second-biggest stablecoin, with a market cap of over $42 billion as of January 31, serving as collateral for many stablecoin ecosystems. Its depeg had an immediate effect on other stablecoins like DAI issued by MakerDAO, down 5% at the time of publication.
To prevent panic selling, MakerDAO filed an “urgent executive proposal to mitigate risks to the protocol” on March 11 seeking restrictions on minting DAI using USDC. MakerDAO is one of the largest holders of the stablecoin, with over 3.1 billion USDC ($2.85 billion) in reserves collateralizing DAI. Crypto whales have reported severe losses and appear to be fleeing their assets in an attempt to preserve capital, Cointelegraph reported.
Circle, the company behind the USDC, disclosed on March 11 that $3.3 billion of its $40 billion reserves were stuck in the Silicon Valley Bank, which was shut down the day before by the California Department of Financial Protection and Innovation. The watchdog also appointed the Federal Deposit Insurance Corporation (FDIC) as the
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