• USDC is the best performing top 10 cryptocurrency by market cap for the past 24 hours.
• The turmoil around USDC continues, although it recovered to about $0.95 as Circled issued a reassuring statement.
• Silicon Valley Bank holds a massive $3.3 billion of the cash reserves backing USDC, which may be causing disruption in the market.
The past 24 hours saw the cryptocurrency market take a bit of a breather as it managed to recover around $16 billion in terms of its total capitalization. Out of these, USDC is the best performer amid the top 10 cryptocurrencies by market cap for this period. Although there is still some turbulence surrounding this stablecoin, it managed to recover to approximately $0.95 after Circle provided reassurances regarding its peg and stability.
Silicon Valley Bank Involvement
Silicon Valley Bank (SVB) is one of the largest financial institutions in fintech, but was recently shut down by regulators due to undisclosed issues. It turns out that Circle holds almost $3.3 billion of cash reserves that back USDC at SVB – suggesting that until these issues are resolved (if ever), USDC might not have perfect 1-to-1 parity with USD currency as intended from its inception.
Bitcoin Reclaims 20K Mark
Further developments in the cryptocurrency world saw Bitcoin reclaiming its spot above $20K mark over the weekend – investors bet on continued institutional funding into 2021 and beyond with BTC’s halving event just months away now and likely driving prices up further in anticipation for this much-awaited event in crypto land!
Ethereum and Litecoin Onward Movements
Ethereum also had some good news over the weekend – developers began launching their own blockchain applications on Ethereum 2’s mainnet ahead of schedule and created new opportunities for developers who want to create dApps using ETH’s blockchain platform as well as build Decentralized Autonomous Organizations (DAOs). Meanwhile, Litecoin continued its bullish trend with LTC recovering back above $90 after dipping below last week following an earlier surge towards record highs during December 2020.
Overall Market Sentiment
Overall sentiments remain positive despite recent fluctuations in certain asset prices – with current levels still being higher than what we had witnessed at any point throughout 2020 so far – multiple project launches from prominent players like Ethereum creating optimism amongst both traders and investors alike regarding longer term prospects for cryptos overall!