Justin Sun's Tron-Based Stablecoins Gain As Investors Flee USDC To USDT In Wake Of SVB Collapse

Zinger Key Points
  • The total market capitalization of Tron-based stablecoins was up 6.65% in the last seven days, reaching $40 billion.
  • Circle’s USD Coin rose back to its $1 peg on Monday, its CEO Jeremy Allaire, that its “USD reserves remain safe.”

As investors sought safety in the wake of Silicon Valley Bank's SIVB collapse this week, the total Tron TRX/USD stablecoin market cap saw a significant increase, while the Ethereum ETH/USD stablecoin market cap fell. 

What Happened: Data from DeFilama shows that Justin Sun-owned Tron reached over 50% levels of the total circulating stablecoins on Ethereum. 

The total market capitalization of Tron-based stablecoins was up 6.65% in the last seven days, reaching $40 billion.

According to on-chain analyst 'Dynamo Patrick', investors fled from USD Coin USDC/USD to Tether USDT/USD following news that USDC stablecoin issuer Circle had exposure to Silicon Valley Bank. 

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The analyst said that the most USDT on many exchanges (including Binance) is now on the Tron blockchain, rather than the Ethereum blockchain. He also said in some countries, Tron USDT is the easiest way to transfer US Dollars.

Circle’s USD Coin rose back to its $1 peg on Monday, following confirmation from its CEO Jeremy Allaire, that its “USD reserves remain safe” and the firm's new banking partner is Cross River Bank.

On Sunday, Allaire applauded the U.S. government and the Federal Reserve for taking action and making a $25 billion funding program available to help banks facing liquidity issues.

Price Action: At the time of writing, ETH was trading at $1,676, up 4.79% in the last 24 hours, according to Benzinga Pro.

Read More: Bitcoin, Ethereum, Dogecoin Surge Amid Financial Stability Woes, Analyst Sees Apex Crypto Breaching $25K As FOMO Grips Investors

Photo: Shutterstock

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