• Curve Finance achieved a record $7 billion in daily trading volumes.
• The depegging of USDC caused other stablecoins to be affected.
• MakerDAO submitted an executive proposal to limit risks and Circle announced new USDC minting.
Record Trading Volumes on Curve Finance
Curve Finance, a decentralized financial platform, surpassed $7 billion in the 24 hours since the collapse of Silicon Valley Bank (SVB) which triggered a wave of uncertainty across markets and caused USD Coin (USDC) to depeg from the US dollar. This is the highest volume the company has ever seen in a single trading day. At the time of writing on March 13, Curve Finance’s daily volumes were around $2.4 billion.
Impact on Other Stablecoins
Due to a sell-off of USDC, other stablecoins were affected as well such as the MakerDAO-issued DAI, which has recovered since this article was written. Fear, uncertainty and doubt (FUD) have spread across cryptocurrency markets over the last few hours. As of Jan. 31, USDC had a market capitalization of over $42 billion and was the second-largest stablecoin. It is used as collateral in several different stablecoin ecosystems.
Executive Proposal by MakerDAO
In order to avoid panic selling, MakerDAO submitted an „urgent executive proposal to limit risks to the protocol“ in response to this situation, seeking to restrict the ability to mint DAI using USDC due to its significant holdings worth approximately $2.85 billion USDC (3.1 billion USDC).
Bulls are Active with New Minting
USDC bulls are active as well despite this event as it gained over 4% in price valuation at the time of writing and its market cap also increased by over 4% taking it up to $40 billion dollars at that time.. Circle also announced plans for new USDC minting during these events .