USDC (USD Coin), a digital currency that is fully backed by US dollar assets, de-pegs from its original $1 stable value. The stablecoin is now sitting at less than 90 cents and it caused alarm and fear to the crypto community. What's happening right now in crypto! Why these stablecoins are acting so weird, despite the fact that these are fully backed by the US dollar?

Well, this 1 USD promised stable coin was the first victim of the things that are going on. We are currently in fear index and it is evident as other cryptocurrencies are affected in price too including Bitcoin, which sit around 19k yesterday. Glad that it bounced back to 20k this morning. But the most affected ones are the altcoins. For example, Cardano hit at around 30 cents, Solana at $18, and even the hot Matic even hit below $1.

Silvergate and Silicon Valley Bank Shutdown

These banks are the reasons why USDC de-pegs its value. Well, it was mainly the Silicon Valley Bank after Circle revealed it was not able to withdraw around $3.3 billion of the $40 billion from Silicon Valley Bank (SVB), which caused panic and FUD among investors around the globe.

Silvergate and Silicon Valley Bank are the two most important figures in the crypto industry as the two are helping people bridge from fiat to crypto and vice-versa. Without these two, it creates difficulty among US investors to bridge the two currencies. So, I understand why the liquidity and volume from the exchanges since the shutting down of these two are greatly affected.

We know that this is now only about the bank but it is also mainly about the investors who are trying to put in and out of the crypto industry. It also affects small businesses and individual investors. In fact, lots of news have been circulating that some SVB depositors aren't able to withdraw their money anymore.

Silicon Valley Bank is the number 16th largest bank in the United States. This is not only affecting the crypto market but also affecting the overall financial sector in the United States.