The stablecoin USD Coin (USDC), issued by Circle, has emerged as one of the top performers in the entire cryptocurrency industry.
The stablecoin has demonstrated a very strong performance after declining to a very low level. The performance of the stablecoin has been better than the rest of the cryptocurrencies among the top-10 crypto by market valuation.
Crypto Market Valuation has Recovered
The running week has been full of surprises for the entire cryptocurrency industry. In this particular period, the valuation of the entire crypto market dipped significantly due to many happenings within the crypto industry.
However, the crypto industry did not remain at the bottom because it started to recover significantly as the weekend began.
One of the best comebacks was demonstrated by none other than the second-largest stablecoin, USDC. The asset has recorded a significant recovery, which has contributed tremendously to pushing up the overall valuation of the crypto industry.
The price of USDC experienced a dip and then recovered in a matter of 24-hours and the same phenomenon was recorded for the entire industry.
The crypto industry had been getting pulled lower in terms of market valuation until the sentiments of the bulls kicked in. On top of that, the impact of a couple of banks’ downfall had also started to fade.
This is the reason why the crypto market recovers within 24-hours. As a result, the overall market valuation of the crypto industry has surged to around $16 billion, which is more of a recovery from the recent downtrend.
USDC is Still Struggling
Although the crypto market has recovered significantly and the USDC has also surged to $0.95, there is still a lot of uncertainty involving the stablecoin.
The stablecoin is still 5 cents less than meeting the dollar peg, which is an alarming situation for the USDC.
The reason behind USDC’s recovery was the statement issued by Circle, confirming that their operations are not hindered despite being exposed to Silicon Valley Bank.
The SVB recently became the target of the Feds and its operations were shut down. Right after the platform’s operations’ seizure, Circle officials announced that they had $3.3 billion exposed to the SVB.
However, they later issued a statement assuring the users that their operations were not at any kind of risk of closure.
This ended up regaining the trust of the public and they started to come back to the market. This resulted in pushing up the trading price of the USDC from a low of $0.87 to a high of $0.95.
Even though Circle has been providing assurances, still, it has $3.3 billion stuck at the SVB, which is a matter of great concern.
This is for the first time in the history of Circle that their stablecoin has de-pegged. Therefore, the entire stablecoin community is concerned because the token has an overall valuation of over $39 billion.
If the stablecoin ends up facing the same situation as its counterpart, TerraUSD Classic (USTC), things may turn ugly for the entire crypto market.
The crypto market may face yet another major crash and it may become unrecoverable throughout the year 2023.
Bitcoin has Reclaimed $20,000
While the entire stablecoin and the USDC community are worried, the Bitcoin communities are not able to control their excitement.
Due to the recent market downtrend, the BTC price had fallen below the $20k barrier. However, the BTC bulls acted fast as they accumulated more BTC to push its price higher.
This is the reason why the value of BTC was pushed over the $20k mark. The trading price of Bitcoin has been pushed up by 1.7% in the past 24-hours.
Other cryptocurrencies have also witnessed the same trend as Bitcoin. Ethereum has also recorded a 2.1% surge in the past 24-hours.
This goes to show that the recovery of the stablecoin is bringing back investors to the crypto market.