Circle’s Stablecoin USDC Affected by Collapsed Bank

Circle CEO and co-founder Jeremy Allaire revealed that the stablecoin issuer had been able to access its $3.3 billion in funds held with Silicon Valley Bank since March 13. Allaire stated that he believed that almost everything was able to clear from the failed lender. However, USDC briefly de-pegged following news of the temporarily locked funds, leading to a drop in the stablecoin’s market cap by almost 10% since March 11.

USDC’s dollar peg has since recovered, but mass redemptions have affected its market cap. In contrast, USDC’s peer, Tether, has recorded a slight increase in its market cap since March 11, climbing over 1% to $73.03 billion. Although the temporarily locked funds represented less than 8% of the token’s reserves, it had a significant effect on USDC.

The January reserve report released on March 2 asserted that USDC was over 100% collateralized, with over 80% of the reserve consisting of short-dated United States Treasury Bills, which are highly liquid assets that are direct obligations of the U.S. government and considered one of the safest investments globally. Despite the impact of the collapsed bank, the reserve report provides assurance that USDC remains backed by highly liquid assets and overcollateralized.

USDC is one of the most widely used stablecoins in the cryptocurrency market, with a market cap of over $10 billion as of March 2023. Stablecoins are a type of cryptocurrency that is pegged to the value of a fiat currency, usually the U.S. dollar, and are designed to provide a stable store of value that can be used for transactions without the volatility typically associated with other cryptocurrencies like Bitcoin.

The news of the temporarily locked funds at Silicon Valley Bank highlights the potential risks associated with stablecoins, which are often seen as a safer alternative to other cryptocurrencies due to their stable value. However, the fact that these coins are backed by fiat currency reserves means that they are only as safe as the financial institutions that hold those reserves.

In recent years, there have been several high-profile cases of stablecoin issuers facing regulatory scrutiny or experiencing issues with their banking partners. For example, in 2018, Tether, the largest stablecoin issuer at the time, faced allegations that its reserves were not fully backed by U.S. dollars as it had previously claimed. Similarly, in 2021, the stablecoin issuer Centre, which is backed by Coinbase and Circle, faced a lawsuit alleging that it had violated securities laws by failing to register its USDC stablecoin with the U.S. Securities and Exchange Commission.

Despite these challenges, stablecoins have become an essential part of the cryptocurrency ecosystem, providing a way for traders and investors to move funds between exchanges and participate in decentralized finance (DeFi) applications without the risks associated with traditional fiat currencies.

In response to the risks associated with stablecoins, regulators around the world are increasingly taking steps to provide more oversight and regulation of these assets. For example, in the U.S., the SEC has signaled that it may consider stablecoins to be securities, which would subject them to greater regulatory scrutiny. Similarly, in the EU, regulators have proposed new rules for stablecoins that would require issuers to be authorized and subject to ongoing supervision.

In conclusion, the news of Circle’s temporarily locked funds at Silicon Valley Bank highlights the potential risks associated with stablecoins, but the fact that USDC remains overcollateralized with highly liquid assets provides some reassurance to investors. As stablecoins continue to play a critical role in the cryptocurrency ecosystem, it is likely that regulators will continue to scrutinize these assets and develop new rules to ensure their safety and stability.


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Bitcoin’s Market Cap Surpasses Meta’s Despite Turbulent Week for Crypto

Bitcoin, the world’s most popular cryptocurrency, has managed to flip the market cap of tech giant Meta, despite a turbulent week for the crypto market following the downfall of Silicon Valley Bank (SVB) and Signature Bank. According to Companies Market Cap, Bitcoin’s market cap has reached $471.86 billion, surpassing Meta’s $469 billion.

Companies Market Cap provides real-time monitoring and ranking of market caps for cryptocurrencies, public companies, precious metals and exchange-traded funds. Only 24 hours earlier, BTC’s market cap was nearly $37 billion below Meta’s, sitting at $433.49 billion. However, Bitcoin’s market cap rose 9.7% in the past 24 hours, pushing the cryptocurrency to sit in the 11th spot among top assets by market cap, just below electric vehicle maker Tesla.

The crypto market has been experiencing a lot of turmoil lately, with the downfall of SVB and Signature Bank causing significant drops in the market. SVB, a key player in the cryptocurrency space, announced that it was shutting down all of its crypto-related accounts, while Signature Bank was sued by the New York Attorney General for allegedly facilitating money laundering for a cryptocurrency exchange.

Despite these setbacks, Bitcoin has managed to bounce back and surpass Meta’s market cap. The gap between the two market caps is now more than $20 billion, though it still is quite a distance from gold, which sits in first position with a $12.59 trillion market cap, followed by Apple in second place with a $2.380 trillion market cap.

Bitcoin’s price has risen 8.72% in the past 24 hours, sitting at $24,441. This price surge could be attributed to various factors, such as increased institutional adoption of Bitcoin and positive sentiment around the crypto market in general.

Bitcoin has been gaining popularity among investors and companies alike, with Tesla investing $1.5 billion in the cryptocurrency earlier this year. Other major companies, such as Square and MicroStrategy, have also invested heavily in Bitcoin as a hedge against inflation and a potential store of value.

Despite its popularity, Bitcoin still faces significant challenges, such as regulatory uncertainty and concerns around energy consumption. Many countries are still grappling with how to regulate cryptocurrencies, which could impact the market’s growth and adoption.

Additionally, Bitcoin’s energy consumption has been a topic of controversy, with some critics arguing that the amount of energy used to mine and transact the cryptocurrency is unsustainable and harmful to the environment. However, proponents of Bitcoin argue that its energy consumption is necessary to maintain the security and decentralization of the network.

In conclusion, Bitcoin’s market cap surpassing Meta’s despite the turbulent week for crypto is a positive sign for the cryptocurrency market. However, it still faces significant challenges that could impact its growth and adoption in the future.


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Bitcoin NFTs to Hit $4.5B Market Cap

 Galaxy Digital’s research unit has predicted that the Bitcoin nonfungible token (NFT) market could reach a $4.5 billion market cap by March 2025 based on the current growth rate and infrastructure of Ethereum’s NFT market. This is due to the emergence of a native on-chain ecosystem for NFTs on Bitcoin, which was not possible before the launch of the Ordinals protocol in late January.

Bitcoin NFTs, also known as Ordinals, allow users to inscribe data such as images, PDFs, video, and audio onto individual satoshis, each representing 0.00000001 Bitcoin (BTC). The market for Bitcoin NFTs has attracted significant attention since the launch of the Ordinals protocol, with NFT giants such as Yuga Labs jumping in on the hype. On February 28, the $4 billion firm behind the Bored Ape Yacht Club announced a Bitcoin-based NFT project dubbed “TwelveFold” in recognition of the Ordinals movement.

Galaxy researchers analyzed the potential growth of Bitcoin NFTs in a new report published on March 3. The report provided three market cap predictions based on the firm’s analysis, covering bear, base, and bull case scenarios. The baseline analysis predicted that if Bitcoin NFTs can expand to mainstream NFT culture like profile pictures, memes, and utility projects, the market capitalization should increase to $4.5 billion.

The researchers also noted that the projection of $4.5 billion is based on the rapid development in inscription awareness coupled with the marketplace/wallet infrastructure already out today. In a bear case scenario, Galaxy estimated that Bitcoin NFTs can still reach a market cap of $1.5 billion based on the current level of interest and supporting infrastructure. On the bullish side of things, Galaxy researchers estimate that the Bitcoin NFT market could reach around $10 billion if it provides strong competition to Ethereum NFTs while providing unique use cases.

The report highlighted the significance and utility of Bitcoin NFTs, noting that the addition of sizable data storage with strong availability assurances opens up a variety of use cases, including new types of decentralized software or Bitcoin scaling techniques. Even the NFT use case alone has the potential to dramatically widen the scope of Bitcoin’s cultural impact.

As of the report’s publication, more than 250,000 Ordinals have hit the market, indicating the growing interest and adoption of Bitcoin NFTs. With the emergence of a native on-chain ecosystem for NFTs on Bitcoin, it will be interesting to see how the market evolves and whether it can compete with Ethereum’s NFT market.


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Crypto Market Cap Slumps Below $900B for the First Time Since Jan 2021

Many crypto investors anticipated that this month of November will re-chart similar history as last year when the price of Bitcoin (BTC) and the combined crypto market capitalization soared to its All-Time High (ATH).


The opposite is exactly what has happened thus far as the market has retraced on its bullish part to pare off the gains it accrued from the start of the month as it went on a freefall over the past 48 hours.

For the first time since January 2021, the combined digital currency market capitalization has slumped below the $900 billion mark and is currently pegged at $874.74 billion.

The Bearish Market Trigger

The cryptocurrency industry was riled by reason of the implosion of the FTX Derivatives Exchange and the potential acquisition by its arch-rival, Binance Exchange. 

In reality, FTX had put up a very healthy facade all through the crypto winter, and is largely regarded as the lender of last resort as it came to the aid of embattled firms like BlockFi, and Voyager Digital.

The company notably earmarked billions of dollars to inject into acquisitions as unveiled earlier in the summer, and all these healthy sentiments vanished when Coindesk published a report showing a possible inflation of FTT valuation by Alameda Research. The report also highlighted how Sam Bankman-Fried has been lobbying against other industry players in the US.

Dissociating from such behavior, Binance CEO, Changpeng “CZ” Zhao said he will be selling his FTT bag, a move that fueled massive selloffs and withdrawals from the company. FTX notably requested Binance to come and buy up its assets so as to cushion the impacts of the liquidity crunch and both companies are currently conducting due diligence at this time.

Crypto Winter Part 2?

The speculations that the market has slid into another crypto winter have fueled more sell-offs in the industry than envisaged. From the current outlook, the industry cannot chart a similar growth as the past November as all focus will be hinged on preventing a cataclysmic ripple effect of the downfall of FTX at this time.

Image source: Shutterstock


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Crypto Prices This Week: Market Cap Stays above $1 Trillion, BTC, ETH, DOGE, SHIB, AR

The cryptocurrency market has posted a bullish performance, marking a good beginning this week. The market started to rally above the trillion-dollar mark towards the end of last month as the appeal for riskier assets increased amid the current bearish macroeconomic environment.

On Monday 02:46 am EAT (East African Time), the market capitalization of all cryptocurrencies was $1.08 trillion, down 2.63% in the last 24 hours. The overall volume of the crypto market during the last 24 hours reached $64.26 billion, a 41.82% fall, according to data platform Coingeko.

With the new month remaining bullish for the landscape, here is a look at five cryptocurrencies investors should watch out for this week.

Bitcoin has maintained its good performance and was trading higher at $21,251.06 after losing 0.31% of its value over the past 24 hours. The flagship cryptocurrency hit a seven-week high on Saturday after a better-than-expected U.S. jobs report in October showed that the labour market remains surprisingly strong, even as the Feds pushes to cool down the economy.

The Altcoin market also continues to see similar bullishness. Ethereum’s price was down 3.26% compared to the prior week at $1,576, but the crypto’s performance has remained among the best this week. The token took advantage of the crypto market’s late push in October, surging all the way to $1,655 and trying to move closer to its $1,700 target. In a span of two weeks, ETH managed to rise by 30%, but the impacts of the Federal Reserve’s 75 basis point interest rate hike caught up with it and made it drop all the way down to $1,500 once again.

Meanwhile, Dogecoin was trading at $0.1243, down 3.17% in the last 24 hours but has gained 96.41% in the last 30 days. Elon Musk’s recently completed his $44 billion takeover of Twitter last week triggered the crypto’s bullishness.

Shiba Inu (SHIB) has also been doing well, with a 25% increase in the past two weeks, though showing consolidation in the past 24 hours, indicating a 2% decline. A lot of the growth that the two meme coins posted is because of the attention it got from Elon Musk buying Twitter. The wild thought that Dogecoin and Shiba Inu could be used on Twitter created massive buying pressure.

Arweave (AR) is also among the most profitable since last week and continues to do well currently. Its current uptake is associated with Meta as the tech firm is undertaking a massive Instagram revolution, requiring third-party crypto projects’ involvement in infrastructure solutions.

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Crypto Assets Mark Cap Continuously Sinks by $200bn

The market cap of the crypto asset continuously lost $200 billion within a day. Bitcoin suffers from bear market sentiment, breaking $26,000 to its lowest level in 16 months.

According to Coinmarketcap, the current cryptocurrency Market Cap records $1,302,616,717,916.

The cryptocurrency market cap had hit a low of $1.4 trillion on Tuesday, well below its all-time peak of $2.9 trillion last November.

U.S. inflation data showed that prices for goods and services rose 8.3% in April, near their highest level in 40 years.

Investors are fleeing cryptocurrencies en masse as the U.S. hikes interest rates by 50 basis points to hedge against inflation. U.S. stocks also suffered a slump.

The price of Bitcoin plummeted to $26,700 on Thursday. This is the first drop below the $27,000 level since December 26, 2020.

Bitcoin then rebounded, at the time of writing, BTC rose 6.51%, and its trading price was $30,501, standing above the key technical level – $30,000.

Ether, the second-largest digital currency, fell to $1,800 per coin, which is the first time the coin has fallen below the $2,000 mark since June 2021. Ether has since regained lost ground and was the last trading at $2,084, up 3.4 %.

According to CoinGecko data, the cryptocurrency market was stunning because of the stagging plummet of LUNA, as its value almost lost from an all-time high of $119.18 on April 5 nearly a month ago to an all-time low of $0.027 on May 12, losing over 99%.

Also, the issuer of LUNA- the peg of TerraUSD (UST), the world’s fourth-largest stablecoin owned by Terraform Labs, lost its peg to the U.S. dollar, plummeting to an all-time low of $0.29 on May 11.

The Luna Foundation Guard is selling its billion-dollar bitcoin holdings to prop up its troubled stablecoin.

The collapse of UST has led to concerns that the market will spread to the rest of the dollar-pegged stablecoins. If a large-scale withdrawal occurs, it is likely that the remaining stablecoins such as Tether will not have enough reserves to support their dollar-pegged.

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How Crypto Market Reacted After Biden’s Executive Order on Digital Currencies

Following the report that US President Joe Biden will sign an Executive Order (EO) on cryptocurrencies this week, the EO has finally been signed with many reasons for investors to go all bullish.


For one, the EO did not contain an outright ban as President Biden only mandated Federal Agencies to coordinate their approach with respect to handling cryptocurrencies.

As gleaned from the mainstream reports, one part of the order will direct the Treasury Department to create a report on the “future of money,” including how the current financial system might not meet consumer needs.

With the details of the EO keeping crypto investors in the clear for now, digital currencies have had the impetus to leap, with many printing a very bullish trend.

Market Reaction to the Executive Order

The global cryptocurrency market capitalization surged 6.11% and was pegged at $1.84 trillion at the time of writing. 

Bitcoin (BTC) printed an 8.45% growth to $41,886.98, growing from a low of $37,260.20 recorded in the past week. Ethereum surged 4.82% to $2,696.56 as the world’s largest blockchain network seeks to pare off the losses it has accrued since the turn of the week. 

Other altcoins also reacted positively to the news with Binance Coin (BNB) changing hands at $393.46, up 2.68% in the past 24 hours. Solana (SOL), Cardano (ADA), and Terra (LUNA) also printed a growth rate of 5.59%, 5.13%, and 17.2% at the time of writing.

Despite the fact that volatility is rocking the market as some investors are taking profits off the market, the majority of long-term HODLers are poised to hang on to their bags as the position of the United States government may likely favour a reasonable innovation as Treasury Secretary, Janet Yellen predicted.

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Bitcoin Bull Raoul Paul Predicts 100x Crypto MarketCap Growth by 2030

The global crypto market capitalization is currently hovering around $2 trillion, according to data from CoinMarketCap. However, Raoul Paul, one of the most vocal mouthpieces in the digital currency ecosystem, expects the market cap to top $250 trillion by the end of the decade. 

The digital currency ecosystem has seen steady growth in recent times. By 2021, the global crypto market cap topped $1 trillion for the first time. The cryptocurrency ecosystem soon smashed the $2 trillion last year as the major assets, particularly Bitcoin (BTC), recorded a massive institutional embrace soaring to an All-Time High (ATH) above $68,700 in November.

To Raoul Pal, the digital currency ecosystem has not attained the same level of adoption as other mainstream traditional investment products. Raoul, who is now the CEO of RealVision, a crypto investment Think Tank, believes that “there’s a reasonable chance” the industry will grow to the $250 trillion valuation level if the level of adoption in the space continues.

“If I look at the total derivatives market, it’s $1 quadrillion. I think there’s a reasonable chance of this being a $250-trillion asset class, which is 100x from here, which would be the largest growth of any asset class in all of history in the shortest period of time,” he said while speaking on the Bankless Brasil podcast.

To Raoul, attaining this valuation point might mean that more than 3.5 billion people will be using it within the defined time frame.

“That will pretty much dovetail in with the idea that 3.5 billion people are using it — that’s just extrapolating the growth numbers of the network. So, if [there are] 3.5 billion users in 2030, the market cap’s going to be something like $250 trillion,” he added.

The digital currency ecosystem is growing at a fast pace, as is visible on all fronts. While no one can really see the future, there is a general expectation that the industry will attain the valuation point as predicted by Raoul soon.

Image source: Shutterstock


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Bitcoin Is the Most Asymmetric Trade in a Generation, According to Pantera Capital’s Dan Morehead – Here’s Why

Asset management company Pantera Capital’s Dan Morehead is saying that Bitcoin (BTC) is a better investment compared to bonds.

In Pantera’s latest Blockchain Letter, the firm’s CEO explains why the flagship cryptocurrency is the most “asymmetric” trade in a generation.

“I’ve spent my career looking for asymmetric trades – trades where the upside is many times the downside.

Obviously, bitcoin/blockchain is the most asymmetric trade in a generation.

Bonds are the polar opposite. The potential upside is only a tiny fraction of the very real downside.”

Following comments from the European Central Bank (ECB) and the U.S. Securities and Exchange Commission (SEC) that Bitcoin is a manipulated market and a historic bubble in the making, Morehead says that governments should instead look inward.

“The biggest Ponzi scheme in history is the US government and mortgage bond market – 33 trillion-with-a-T dollars – all being driven by one non-economic actor with a dominant position who is trading based on material, non-public information.”

Morehead says that the Bitcoin market is too big to be manipulated, citing daily trading volume as the reason and that bond investors are, in fact, the ones that may lose their investments.

“Bonds investors are going to get absolutely destroyed when the Fed stops manipulating the bond market.”

He tells investors to allocate for Bitcoin and other crypto assets to limit their risks against a bond bubble.

“Someday financial gravity will resume functioning.

If you’re an institutional investor with any bonds, but especially if you’re more like the classic 60/40 stock/bond portfolio, you might want to hedge the bond bubble with Bitcoin/crypto assets…

Buying crypto with only $3 trillion market cap seems like a fantastic hedge.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Crypto markets tag $3T combined market cap for first time

With Bitcoin trading within 2% of its all-time high while Ethereum, Solana, and Polkadot push into previously uncharted price ranges, CoinGecko estimates that the combined cryptocurrency market cap has broken above $3 trillion for the first time.

According to CoinGecko, the total crypto capitalization broke into new highs above its previous record of $2.62 trillion on Oct. 20 and has increased by a further 14.5% in less than three weeks.

The combined crypto market cap had previously topped out at a peak of nearly $2.62 trillion on May 12 of this year, before bouncing off a local low of $1.24 trillion on July 20. The previous bull cycle saw the total digital asset capitalization post a high of $848.6 billion on Jan. 6, 2018.

CoinGecko’s data tracks 10,418 digital assets across 518 cryptocurrency exchanges.

Despite Bitcoin’s impressive price gains during the past two years, BTC’s market dominance has fallen by 42.8% since tagging a top of 70.8% on Sep. 6, 2019.

While Bitcoin still beats out its closest rival by more than double in terms of market share with 40.5% or $1.22 trillion compared to Ethereum’s 18.6% or $560 billion, the combined capitalization of all other cryptocurrencies is 40.9% or $1.24 trillion — evidencing the increasing plurality of the digital asset sector.

Related: Meme tokens and dogcoins flood the market as price wars heat up

According to Messari’s Ethereum screener, which currently tracks 209 projects that have been built on the network, the Ether ecosystem currently represents a market cap of $829 billion or 27.6% dominance.