Ripple (XRP) dips along with other altcoins, after the USDC stablecoin takes a massive hit and de-pegged from its $1 price value.
Ripple’s CTO expresses serious concerns over the downfall of SVB, while announcing that Ripple will issue a statement concerning its exposure to the bank.
The weekend took a rather concerning turn for the entire cryptocurrency market. Even the broader fintech and finance market have not been spared as the recent events have resulted in panic from investors, traders and market participants across the board.
For the cryptocurrency market, the new week is looking gloomy for investors and key players alike. Sentiments shared by prominent figures collectively reflect uncertainty in the market and its next potential move. For altcoins, losses are still being recorded, and the likes of XRP has emerged as one of the most bearish altcoin at this time.
According to our data, XRP is still the 6th most valuable asset by market cap. While it might not be losing its position anytime soon, a lot of bullish momentum is needed in order to sustain its current levels.
Ripple (XRP) like many other altcoins has taken a hit. Following the crash of the Silicon Valley Bank, XRP has shed quite significantly. The altcoin dropped to $0.35 earlier today, and looked to be eying the $0.30 level. However, prices look stable at the moment. With XRP gaining 1.85% in the last hour, the asset could continue on an upward trajectory.
Why the price drop
An unconfirmed rumor has it that Silicon valley holds some money belonging to Ripple. This could explain the bearish movement by XRP but nothing concrete can be pointed to this and investors’ fears worsen. XRP’s price decline to 0.35 comes after the collapse of Silicon Valley Bank.
As we reported earlier Silicon Valley is believed to be holding around $40 billion worth of USDC which almost lead to its downfall. Circle’s USDC stablecoin also dropped significantly, and lost its peg to the USD, dropping to a low of $0.8774 yesterday, on March 11th.
Read more: Breaking: $40 billion of USDC reserves remain at collapsed Silicon Valley Bank – USDC crash coming?
USDC seems to be making a comeback as the new week takes off. The stablecoin is up 2.16% in the last 24 hours, and prices have since moved upwards. USDC is yet to reclaim $1, but looks promising in the near term, as prices climb up to $0.97.
Ripple’s CTO speaks on SVB collapse while Ripple (XRP) struggles to stay afloat
Meanwhile, market proponents have kept their eyes peeled for a response from Ripple, concerning Ripple’s exposure to the Silicon Valley bank and whether or not Ripple will be affected. David Schwartz, the CTO of Ripple told the market that a statement was coming soon.
We will issue a statement soon. I can’t really say anything until we do.
— David “JoelKatz” Schwartz (@JoelKatz) March 12, 2023
He went ahead to explain his confusion surrounding the bank’s downfall, asserting that a bank run having the capacity to pull the plugs for the bank is concerning.
I still don’t understand how a run on a bank can cause it to become insolvent. If the bank was solvent before, that means its assets exceed its obligations. A run doesn’t change either the assets or the obligations, so how can the obligations now exceed the assets?
He ultimately believes that the bank was already insolvent, and failed to track its obligations accurately. She went on to explain that the bank did not “mark-to-market their long-term treasury holdings” and that also played a role in Nanking it insolvent.
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