The supply for several stablecoins has shifted or has experienced major reductions in the past month.
Major Stablecoins Suffered Mass Reductions
These tokens suffered from the largest redemptions in the past month. Among these tokens was Gemini USD, which suffered from the largest redemption.
The market data shows that the redemption rate for GUSD was 30.5%, which was much higher than the rest of the stablecoins that faced the dip.
Only Binance USD was able to experience somewhat of a similar reduction in its supply in the same month. The stats show that the reduction was 30.1% in the particular period for BUSD’s supply.
The most alarming situation for the stablecoin market was the depegging of the USDC back on March 11, 2023. It was triggered on the particular and continued for a few days until it recovered and regained its dollar peg.
Due to the depegging, the trading value of the USDC declined to a lower figure. It reportedly went down to a low of $0.877. This happened because Circle, the company behind the issuance of USDC had its reserve of $3.3 billion stuck on Silicon Valley Bank (SVB).
It wasn’t known how long it would take for Circle to recover the funds from the SVB. However, the regulatory authorities in the US announced that they would return the funds to the depositors.
It was confirmed by the Feds that the US Treasury would be releasing the funds back to the depositors. After the announcement by the Feds, the trading price of USDC started to recover.
As of now, the value of the USDC has recovered but still, the losses that the token faced have not fully been recovered.
Situation of TUSD
The same day when the USDC suffered from the de-peg, the total circulation of the TUSD token was at 1.32 billion tokens.
However, the users started to move their funds to the TUSD token, which ended up increasing its circulation. After the great influx of investors, the circulation of the TUSD tokens surged to 2.02 billion tokens.
Even now, the circulation of the TUSD tokens stands at 2.02 billion, and this change has been witnessed in a matter of 18 days.
The report shows that the circulation of the TUSD tokens has surged by 53% in the past 18 days. As of February 24, 2023, the total supply of the TUSD tokens was at 972 million. This goes to show that amidst the chaos, it was the TUSD tokens that demonstrated strong gains.
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