Silicon Valley Bank Collapse Shakes Cryptocurrency Market
The collapse of Silicon Valley Bank (SVB) caused stablecoin prices to swing wildly and Ethereum gas fees to soar, shaking the cryptocurrency market and raising concerns about its stability.
Stablecoin Prices Swing Wildly
On March 11th, the cryptocurrency market was thrown into turmoil after the collapse of Silicon Valley Bank (SVB).
This is the second crypto-linked bank to fail in the past week. Shortly after the bank's collapse, Treasury Secretary Janet Yellen convened with top financial regulators to discuss the situation. The incident has raised concerns about the stability of the cryptocurrency market, which lacks a central bank like the Federal Reserve that can bail out the industry.
The failure of SVB caused some of the industry's core plumbing to malfunction. Stablecoin prices became highly volatile, and Ethereum gas fees soared as investors scrambled to move their money around.
Circle's USDC stablecoin, which is usually pegged at $1, sank to $0.89. The USDC/USDT pair, which tracks Circle's coin versus the bigger one issued by Tether, fell as low as $0.89 on the Kraken exchange at 03:49 UTC on Saturday. This is far lower than it has ever been, even during the market stresses that followed the FTX debacle in November.
$USDT "depegged" to the upside, worth 1.06 $USD and 1.08 $USDC today. $USDC dipped to 0.89 $USD. You have to wonder if the market is losing faith in US-homed financial products.
— Jesse Powell (@jespow) March 11, 2023
Board: https://t.co/ndnGPaSwmm pic.twitter.com/Fi6Fh5mSQk
Stablecoins derive their value from the reserves backing them. SVB confirmed that about $3.3 billion of the reserves backing the world's second-largest stablecoin were tied up at the failed bank. As a result, USDC's market capitalization has slumped below $40 billion.
Gas fees, which measures how much it costs to complete an on-chain transaction, also surged. For Ethereum, the median gas fee jumped as high as about 231 gwei, versus the roughly 20-to-40 range seen earlier Friday, according to Nansen.ai.
The collapse of SVB raises the question of who will step in if any other banks or financial institutions linked to crypto collapse. The repercussions are unclear if SVB customers, including Circle and its USDC stablecoin, are forced to take a haircut on their money. This event has echoed the 2008 global financial crisis, where bad news was followed by even worse news.
What is Circle:
Circle describes itself as a a global financial technology company helping money move at internet speed. Our mission is to raise global economic prosperity through the frictionless exchange of value.
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Related News
Raffle Coin (RAFF) Presale, Tipped for 100X, Draws OKB (OKB) and Cronos (CRO) Investors to Its Raffle Platform
Offering transparent governance and promising a 100X return opportunity, analysts anticipate Raffle Coin's potential to become a "blue-chip" cryptocurrency.
The spotlight this time goes to Raffle Coin (RAFF) in the dynamic cryptocurrency market for being an upcoming decentralized raffle platform that looks set on a path of exponential growth. Raffle Coin (RAFF) is one of those projects where its presale has been noticed by not only individual investors but also established projects like OKB (OKB) and Cronos (CRO) amid whispers of a possible 100X opportunity.
Let's dive further to understand what makes Raffle Coin (RAFF) an interesting contender in decentralized finance (DeFi).
OKB (OKB): Navigating Low Volatility in the Crypto Market
OKB (OKB) is comparatively one of the calmer ones, showing its latest 3.47% rise to $59.64 compared with its peers. OKB (OKB) receives a Volatility Rank of 24 from InvestorsObserver, which, paired with its counterparts, leaves it in room for the bottom 24% of cryptos. This translates to less consistent, narrower price swings and Trading near resistance levels; OKB (OKB) faces potential selling pressures ahead despite its stable performance.
Cronos (CRO): Paving the Way for DeFi Adoption
Cronos (CRO) is one of the blockchain platforms emerging as a trend with the easing of the DeFi applications. Currently trading at $0.1454, with a year that has seen spectacular rises and positive momentum from the previous 7 Days, Cronos (CRO) is high on interest as a token, seeing significant adoption and volume on sites like KuCoin.
Raffle Coin (RAFF): A Decentralized Raffle Revolution
Raffle Coin (RAFF) has been the talk of excitement in the crypto space, with the presale being said to present one of the best opportunities for a 100X return. Designed to suit individual and institutional investors alike—including, but not limited to, OKB (OKB) and Cronos (CRO)—Raffle Coin (RAFF) offers leading and decentralized governance in its entirety with a completely clear reward structure.
At just $0.020 per token, there is no doubt that, in the presale stage, Raffle Coin (RAFF) will be luring investors for huge returns as it snowballs. Analysts and enthusiasts alike are waiting for Raffle Coin (RAFF) to become a "blue-chip" cryptocurrency, considering the strategic partnerships and features developed to be user-centric.
Conclusion
The high return presale of Raffle Coin (RAFF) is calling the attention of investors in the crypto space. With an innovative model, strategic partnerships and a fast-growing community, Raffle Coin (RAFF) is poised to carve its name in DeFi history. In this respect, from the unfolding of the project, it is clear that Raffle Coin (RAFF) is more than a cryptocurrency but a change engine for the decentralized platforms and the raffle world.
Find out more about the Raffle Coin (RAFF) presale by visiting the website here.
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This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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