The second largest stablecoin issuer Circle has failed to recover the USD Coin (USDC) market capitalization despite several attempts. As a result, the market capitalization of the USDC token remains at $30.6 billion, which makes USDC the 5th largest cryptocurrency on CoinMarketCap’s list.
Nearly $13 billion in market capitalization rapidly vanished as the USD Coin (USDC) plummeted over the past two months. Jeremy Allaire, Chief Executive Officer (CEO) of Circle Internet Financial Ltd, held the US regulators responsible for the cryptocurrency crackdown leading to huge losses in the last two months.
According to an interview with Bloomberg TV on Wednesday, Jeremy Allaire emphasized the enormous concern the world is facing about the United States banking system following three major bank crises in the past two months. Also he added, “We are seeing concern about the regulatory environment in the US.”
During the season of collapse that began with the fall of FTX and subsequently followed by major banks like SVB, Silvergate to name a few, USDC cracked below dollar pegging. The fall in USDC price forced Circle’s Allaire to erupt with demands for stringent regulation. Thus, USDC, which lost its market value of $1 during the Silver Valley Bank collapse, is now pegged to the US dollar.
USDC reverted to its dollar pegged value following Circle’s statement. The issue of $3.3 billion USDC reserves at Silicon Valley Bank has been resolved after US regulators assured full recovery for all depositors of the two troubled banks, Silicon Valley Bank and Signature Bank, the USDC issuer said.