• Curve Finance recorded a record $7 billion in daily trading volumes on March 11, surpassing previous records.
• The USDC depeg triggered a wave of uncertainty across markets and caused the stablecoin to drop below its $1 peg.
• MakerDAO submitted an “urgent executive proposal” to limit risks to the protocol and prevent panic selling.
Record Trading Volumes for Curve Finance
Curve Finance experienced all-time highs on March 11, reaching $7 billion in 24 hours of trade volume. This is the highest volume the company has ever seen in a single day of trading. As of March 13, Curve Finance’s daily volumes were around $2.4 billion, making it second only to Uniswap among DEXes.
USDC Depeg Triggers Market Uncertainty
The sudden depegging of USD Coin (USDC) from the US dollar resulted in fear, uncertainty and doubt (FUD) across cryptocurrency markets over the last few hours. With a market capitalization of over $42 billion as of Jan 31, USDC was the second-largest stablecoin prior to its depegging and was used as collateral in multiple stablecoin ecosystems. Other stablecoins such as MakerDAO-issued DAI have since recovered from this event but MakerDAO proposed an executive proposal to limit risks associated with panic selling.
Circle Announces New USDC Minting
As USDC bulls become active after its depegging from the US dollar, its price valuation increased by 4.5% at the time of writing and its market cap grew by 4%. Upholding at around $0.99 per coin, it struggles to hold back up against its original peg value – however Circle announced new minting capabilities which could help curb this trend moving forward..
Implications for Stablecoins Ecosystems
The collapse of Silicon Valley Bank (SVB) had a direct effect on several different stablecoin ecosystems due to their use of USDC as collateral or reserve asset holdings – most notably MakerDAO which holds 3.1 billion USD worth of reserves in USDC alone and has since implemented risk mitigating protocols to avoid panic selling within their protocol.. Along with this, imbalanced pools due to sell-off have been observed within Curve liquidity pools which can be attributed directly to this event too – though these pools have been recovering since then too..
Conclusion
In conclusion, although there are still some uncertainties surrounding USDC after its depeg from the Dollar – it appears that many different platforms are taking proactive steps towards mitigating any potential risks associated with it’s sudden price movements; allowing for smoother navigations through what could have been very turbulent waters for many individuals & organizations who rely heavily upon various aspects within these ecosystems..