This comes despite a 10.1% and 10.6% decline in #BTC and #ETH respectively between March 9-10 amid the “#stablecoin panic,” when #USDC and others with exposure to it such as #DAI and #FRAX, de-pegged upon fears that Circle had lost the $3.3B in deposits it held at SVB.

This comes despite a 10.1% and 10.6% decline in #BTC and #ETH respectively between March 9-10 amid the “#stablecoin panic,” when #USDC and others with exposure to it such as #DAI and #FRAX, de-pegged upon fears that Circle had lost the $3.3B in deposits it held at SVB.

#DeFi users even “fled to #USDT” pulling it from liquidity pools and lending rather than risk exposure to USDC or #USDC-exposed assets such as #DAI and #FRAX (more on this later).

This decline is likely due to trader concern that a #USDC implosion would result in #FRAX redemptions, which in turn would lead to the minting, and subsequent sale onto the market, of #FXS.

As a result, #FRAX experienced its largest ever de-peg, trading as low as $0.877 on some venues as the market feared it would be caught up in #USDC-related contagion.

#FRAX, the sixth largest stablecoin, is also collateralized in part by #USDC through its liquidity and lending #AMOs (algorithmic operations).

The instability surrounding #USDC caused a domino effect on other stablecoins such as #DAI, #USDD and #FRAX, which also slipped away from their $1 position.

The instability surrounding #USDC caused a domino effect on other stablecoins such as #DAI, #USDD and #FRAX, which also slipped away from their $1 position.

#USDD responded to the #USDC sell-off with a nearly 7.5% drop to trade at $0.925, while #FRAX dipped even further to $0.885.

#USD #Digital (#USDD), a #stablecoin issued by Tron, and fractional-algorithmic stablecoin Frax (#FRAX) shared a similar fate due to adverse market sentiments. 

Following #USDC’s depegging, three stablecoins — #DAI, #USDD and #FRAX — also depegged from the U.S. dollar.

Top decentralized #stablecoins Dai (DAI) (-43.4%) and Frax (#FRAX) (-43.9%) took #similar percentage losses, although #DAI’s $4 billion loss was almost 5 times larger in absolute terms.

#Ethereum-Based #Frax #Finance (FXS) Is Up 64%, Is There Still Opportunity?

#FRAX Share #FXS Bulls Bounce Back as Bullish Momentum Grows Stronger