Following the unexpected collapse of Silicon Valley Bank, which happened shortly after Silvergate's voluntary liquidation, the market is still grappling with the aftermath. As a result, DAI, an algorithmic stablecoin, has been affected and reached its lowest point ever, dropping to 0.88 cents.
CoinGecko data indicates that DAI is presently being traded at a value of $0.90. This algorithmic stablecoin is backed by assets held by MakerDAO, which includes USDC. Traders are conjecturing that Circle, the issuer of USDC, has a greater exposure to Silicon Valley Bank's financial difficulties than the $3.3 billion disclosed in the $40 billion supporting USDC. On-chain statistics from Dune reveal that over the previous 24 hours, $563 million worth of DAI has been burned. DAI's total market cap is now at $4.9 billion. As traders abandon USDC, Curve 3pool's liquidity pool has been affected, with its share of USDT dropping to less than 1.5% as of Saturday afternoon Hong Kong Time.
Earlier this week, it was split evenly among USDT, USDC, and DAI as anticipated. In the meantime, Tron's USDD has also been negatively impacted, and its value has dropped to $0.93, while Tether continues to be pegged at $1.