Circle’s USDC, one of the largest stablecoins, experienced significant delays in processing transactions, causing concern among traders and investors alike. A note by Circle to various trading companies confirmed that outstanding transactions on the Signet network of Signature Bank would be executed on coming Monday due to the delay caused by the network’s capacity threshold being reached, media reports said.
After Circle’s disclosure that the Silicon Valley Bank’s failure had trapped $3.3 billion of its total reserves supporting USDC, the stablecoin lost its peg to the US dollar and dropped to as low as $0.88. It has subsequently recovered but is still trailing at $0.96.
Despite the setback, Circle’s USDC remains one of the most popular stablecoins in the market, used by traders and investors worldwide. USDC intends to maintain a stable peg of one-to-one with the US dollar, providing stability and reliability for those transacting in the cryptocurrency market.
Circle, which founded USDC in 2018 with Coinbase, is working to resolve the delay and ensure that transactions can be processed smoothly and efficiently. However, the company has not yet commented on the issue. Still, many traders and investors hope the delay will be resolved quickly and without significantly impacting the cryptocurrency market.
While setbacks like the current delay can be frustrating, they also remind the challenges that must be overcome to build a strong and sustainable cryptocurrency market.
