USDC lost its peg to the US dollar yesterday. Instead of trading at $1, Circle’s stablecoin witnessed its value drop to a concerning level on Binance. This was enough to create panic in the cryptocurrency community.
USDC cryptocurrency drops to $0.74
In mid-August, USDT experienced a price drop, trading at $0.9988. This wasn’t the first time Tether’s stablecoin couldn’t maintain a 1:1 ratio with the US dollar in the same month. And this trend continued into September.
Why did USDT become an “unstablecoin”? Among other reasons, analysts have suggested significant liquidations on major cryptocurrency exchanges. Some have even gone further to allege that Binance and Changpeng Zhao have acted maliciously towards Tether.
“Circle’s stablecoin $USDC temporarily lost its footing, dropping to a low of $0.74 three times today, following widespread market sell-offs due to a report casting doubt on the approval of a Bitcoin Spot ETF this month.”
According to CoinDesk, the stablecoin USDC lost its 1:1 ratio with the US dollar three times yesterday, January 3rd.
Here are some details related to these price drops: From 12:10 to 12:21 UTC, USDC dropped to $0.74, $0.80, and $0.79. This stood out compared to the USDT trading pair on the Binance cryptocurrency exchange.
And that’s not all: the market depth of 2% for the USDC/USDT pair has been trending upwards on Binance. This led to $26 million in orders being placed at $1.02 and $6.1 million for orders placed at $0.98.
In other words, when a trader places a sell order for over $6.1 million, the USDC price will drop below $0.98. However, the estimated volume was $6.2 million at 12:10 UTC and $4.3 million at 12:21 UTC.
Maximize your Cointribune experience with our ‘Read to Earn’ program! For every article you read, earn points and receive exclusive rewards. Sign up now and start earning benefits.
The blockchain and cryptocurrency revolution is underway! And on the day when its impacts will be most keenly felt on the world’s most vulnerable economy, despite all hopes, I will say that I am involved in it
