• USDC stablecoin experienced significant outflows and investors fled to USDT
• USDC market capitalization dropped 23% after the collapse of its reserve banking partner Silicon Valley Bank (SVB)
• USDT has gained a 22-month high in market share and holds a 60% market share among stablecoins

USDC Outflows Exceed $10B

USDC stablecoin has seen significant outflows following the closure of its key reserve banking partner Silicon Valley Bank in March. Investors have been fleeing USDC and moving towards Tether (USDT), which has reached a 22-month high in market share. As a result, USDT now accounts for 60% of the entire stablecoin sector.

Circle’s Reserve Banking Partner Collapses

Regulators closed down reserve banking partner Silicon Valley Bank on March 10th, resulting in $3.3 billion worth of cash reserves being locked up in its vaults until government intervention. This caused USDC to lose its peg temporarily, leading to a 23% drop in its overall market capitalization from $43 billion to $33 billion.

Shift From Other Stablecoins To USDT

The slump of both BUSD and USDC has caused investors to flock to Tether (USDT). Since March 10th, USDT’s market capitalization has grown by 8 billion dollars from 71.5 billion dollars to 79.5 billion dollars as traders seek safety with an established token like USDT that is widely used for facilitating trades across multiple exchanges.

Regulatory Scrutiny Causes Uncertainty In Stablecoin Sector

The closure of SVB and regulatory scrutiny are having a major impact on the entire stablecoin sector as investors look for safe havens for their money during this period of uncertainty. The New York regulators have also told Paxos to stop minting Binance USD (BUSD), further adding to the chaos within the cryptocurrency industry as investors fear similar regulations may be imposed on other tokens as well.

Conclusion

Overall, it is clear that Circle’s USDC token is struggling due to recent events while Tether continues to dominate with its high market share across the sector. While it remains unclear what will happen next, one thing is certain – investors are increasingly turning towards reliable tokens such as USDT in order to protect their investments during these turbulent times within the crypto world.