Silicon Valley Bank collapse turns out to be the biggest bank to fall since the financial crisis erupted in 2008. However, this crisis has also indulged the cryptocurrency industry with it. U.S. digital asset firm Circle stated that it has $3.3 billion stuck in the collapsed bank which sent out a massive shockwave in the market.
USD circle (USDC)a dollar-backed stablecoin, registered a massive de-pegging event after its issuer announced funds reserved in the SVB. USDC price dropped by over 10% in the last 24 hours. Collapsing from its $1 pegged value, USDC went on to trade at $0.90
Amid this time of crisis, Ethereum co-founder Vitalik Buterin seems to be supporting the depegged stablecoin. Vitalik labeled the wallet address and converted several digital tokens into USDC.
Vitalik’s labeled address deposited 500 Ethereum in the Reflexer. Then he went on to mint 150K Rai Reflex Index (RAI) amid the ongoing crisis. However, the address swapped 132.5k RAI for 378.5K USDC. while the remaining 17.5K RAI was swapped for 50K DAI, another depegged stablecoin within a few hours.
Earlier, Vitalik stated that he is optimistic about the RAI model. Reflexer (RAI) is an algorithmic stablecoin that is non-pegged and is solely collateralized by Ethereum.
Rai Reflex Index is down by 4% in the last 24 hours. RAI is trading at an average price of $2.67, at the press time. However, its 24-hour trading volume has spiked by 187% to stand at $1.7 million.
However, the institutions holding USDC are on a selling spree. As per Look On Chain data, IOSG Ventures’ related institution went on to sell 118.73 million of USDC for 105.67 million USDT. It also included 2,756 Etherem (approx worth $4 million).