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.
Trend that I haven't seen many people talk about.
— Patrick | Dynamo DeFi (@Dynamo_Patrick) March 13, 2023
The flight from USDC to USDT this week pushed the total Tron stablecoin market cap higher, even as the Ethereum stablecoin market cap fell.
Tron now has more than 50% as many circulating stablecoins as Ethereum. pic.twitter.com/Elp1eMYJKU
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.
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