Major stablecoins destabilized as market volatility and redemptions surge

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The FTX saga managed to rock even the most solid stablecoins, though most of the digital dust has settled again.

Circle’s USDC has not been immune from the volatility either as redemptions topped $1 billion. The stablecoin fell to $0.977 very briefly yesterday but rapidly regained its peg according to CoinGecko.

TrueUSD redemptions barely surpassed $1 million, Moreno noted, but that didn’t prevent a de-pegging to $0.98 yesterday. The Paxos USDP stablecoin dropped as low as $0.96 as redemptions hit $100 million, he noted. There was some volatility for the Binance stablecoin, BUSD, on the Gemini exchange resulting in a brief dip to $0.98.

Tron’s algorithmic USDD stablecoin is still way off its peg, currently trading at $0.973 according to CoinGecko. It fell as low as $0.952 yesterday at peak volatility. Concerns over the collateral backing the stablecoin are rising as Tron’s TRX token, which is used to redeem USDD, has tanked 12% since the beginning of the week. Justin Sun alsoThe de-pegging incidents coincided with a slew of stablecoins leaving the FTX exchange on Nov. 10.A total of 99 transfers were made, with $4,433,330 stablecoins.

 

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