The crypto market is experiencing a stablecoin sell-off, which is causing DAI to reach its lowest value ever

The sudden collapse of Silicon Valley Bank, which followed Silvergate's voluntary liquidation, has had a knock-on effect on algorithmic stablecoin DAI, causing it to hit an all-time low of $0.88 cents. DAI is collateralized by MakerDAO holdings, including USDC, and traders speculate that Circle, which issues USDC, may have worse exposure to Silicon Valley Bank than previously disclosed. In the last 24 hours, $563 million worth of DAI has been burnt, reducing the stablecoin's market cap to $4.9 billion. The liquidity pool of Curve 3pool has also been impacted as traders flee USDC, with its share of USDT falling to less than 1.5%. Tron's USDD has also fallen to $0.93, while Tether remains pegged at $1.