The depegging of USD Coin has resulted in billions of dollars of losses via a chain reaction that has shaken the crypto ecosystem.
“For USDC to go bust, it needs to satisfy three conditions; there is an abundance of deposits on SVB, and three other at-risk banks, the recovery rate for such deposits remains low, and USDC cannot mitigate such losses.“
Zeng added that his personal opinion is that “there is a low probability of an issue, and even if there is an issue, it won’t be as severe as FTX.“ Nevertheless, the DeFi analyst added that his estimate for the net value of USDC is “$0.885 at extreme situation and $0.985 at normal situation.“ At the time of publication, the price of USDC has fallen 8.30% in the past 24 hours to $0.9163.
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