As USDC holders counted losses over the weekend, investors of other stablecoins saw a dramatic surge in the market caps of their favorite projects.
On Friday, when USDC issuer Circle disclosed that it held a portion of the stablecoin’s cash reserve in the now-fallen Silicon Vally Bank, USDC began a downward movement to reach $0.87 as of Saturday morning. However, the token has since regained its dollar peg, thanks to intervention from the US and UK regulators.
But despite USDC recouping its losses, multiple rivals have already capitalized on its brief troubles. They include:
USDT is the largest stablecoin by market capitalization. Before Circle’s announcement, the token’s market cap stood at $71.9 billion. By Monday, that figure had risen to $75.1 billion. However, data on CoinGecko shows that it has fallen to $73.2 billion at press time.
As per the auditor’s report released last December, over 80% of USDT reserves are held in short-term deposits and Commercial paper, while cash reserves only make up 9% of the total. The remaining percentage is spread between reverse repurchase agreements and money market funds.
DAI supply is regulated and maintained by the Maker, one of the most established decentralized finance projects. The stablecoin is currently the fourth-largest by market cap.
On Friday, DAI had a market cap of around $4.9 billion. By Monday, that figure had increased by 28.7% to $6.4 billion. However, the market cap is at $5.9 billion as of this writing. It is worth highlighting that DAI also depegged on Saturday to $0.88.
TUSD is an Ethereum-based stablecoin launched in 2018. It markets itself as the first-ever regulated stablecoin fully backed by USD. TrustToken, the company behind the stablecoin, keeps the fiat reserves in various trusted banks.
Despite TrueUSD’s exposure to Silicon Valley Bank, the stablecoin market cap saw gains of $700 million over the weekend to comfortably sit at $2.1 billion.
Liquidity USD (LUSD)
LUSD is a dollar-pegged native token of lending protocol Liquidity. The platform users receive loans in LUSD after offering their ETH as collateral. On Friday, the LUSD’s market cap was around $231 million. By Monday, the figure had surged 10% to $257 million.