The cryptocurrency market has seen a bit of a respite over the past 24 hours, with the total capitalization recovering by around $16 billion. The turmoil surrounding USDC, the second-largest stablecoin by total capitalization, has been the hottest topic in the cryptocurrency market. USDC’s price should never fluctuate from $1, but yesterday it crashed and burned below $0.90 for the first time due to Silicon Valley Bank being shut down by regulators. Circle, the issuer of USDC, released a statement reassuring that they will cover any shortfall using corporate resources and external capital if necessary. This appears to have calmed the sentiment as USDC recovered to around $0.95.
The news of USDC’s recovery has had a positive effect on the broader cryptocurrency market, with Bitcoin reclaiming the important technical and psychological level of $20,000 and Ethereum’s worries about the NYAG claiming ETH is a security beginning to dissipate. MATIC also pushed above $1 and is up 4.2% on the day. USDC is the best performer from the top 10 cryptocurrencies by market cap.
