The depegging of USDC has been attributed to the collapse of Silicon Valley Bank, which caused some instability in the cryptocurrency market. According to The Block, USDC depegged overnight and fell to as low as $0.88 following the bank's collapse
Reuters reports that USDC lost its dollar peg and slumped to an alarming rate after revealing a $3.3 billion exposure to SVB
The Wall Street Journal explains that Circle's USDC stablecoin broke its peg with $3.3 billion stuck at Silicon Valley Bank, which made investors jittery about any signs of depegging
CoinDesk also reports on how SVB's failure caused some instability in the crypto market
These sources suggest that the depegging of USDC was due to the exposure of Circle and other companies to Silicon Valley Bank, which caused concern among investors and led to a drop in value for the stablecoin.
