The stablecoin realm has been going through a tough time over the weekend due to the banking drama and Circle. Circle (USDC) has undoubtedly gained attention amidst all the turmoil, though not always for the better. The stablecoin issuer confirmed the rumors that Circle did indeed hold $3.3 billion in cash in the Silicon Valley Bank.
Also read: Behind the Curtain of Silicon Valley Bank: A Look at the CFO’s past at Lehman Brothers
Following this drama, the Gemini Dollar (GUSD) has also been affected. GUSD has lost its peg and is trading at $0.9793 at press time.
Gemini confirmed zero relationships with Silicon Valley Bank
Amidst all the Silicon Valley Bank chaos, including the bank’s closure, the cryptocurrency realm has definitely been affected. However, in one of its recent tweets, the exchange tweeted regarding its relationship with SVB.
The exchange expressed that it doesn’t have any banking relationships with SVB. Gemini also mentioned that this includes all Gemini products and services and also GUSD.
Also read: Here’s How Circle USDC’s Relationship with Silicon Valley Bank Led to the Current Chaos
However, the whole USDC effect had its ripples on other stablecoins, including GUSD. GUSD lost its peg and dropped to a low of $0.9636 before shifting to its current price of $0.9793. The 24-hour trading volume has also spiked by 248%. USDC’s market cap has dropped by 14% in the last 24 hours and is trading at $0.9141 at press time.