Investors have lost confidence after the banking crisis that started in the US last week was linked to the crypto industry.
Stable cryptocurrencies have seen massive capital movements after it was revealed that stablecoin issuer Circle had billions of dollars in deposits at the bankrupt Silicon Valley Bank.
The reflection of the banking crisis on stablecoin issuers is slowly emerging. According to market researchers, the total supply of four different stablecoins decreased throughout March, while TrueUSD (TUSD) stood out.
Increasing pressure on the Binance exchange in the wake of the bank crisis prompted crypto investors to rush the TUSD token issued by Tron. According to CoinGecko data, the TUSD supply has increased by 110% in the last 30 days to $2 billion.
The market value of other stablecoins issued by Tron increased by 218% over the same period.
Which Stablecoins Lost Share?
Circle USD (USDC) lost 25% of its market value due to having deposits in the bankrupt Silicon Valley Bank. While the supply of USDC was around $42 billion before the crisis, it currently has a market value of $33 billion.
Pressure exerted by US government agencies on Binance and Gemini has also wreaked havoc on their local stablecoins. BUSD and GUSD lost 30% of their total market cap.