We have seen how USDC lost its pegged value last week after the silicon Valley Bank crash. Circle is the company that manages this coin and they can manage the value and USDC is back to its pegged range. After this incident lord of people leave that even stablecoins are not reliable because never know how things will be in the next moment and what factors are driving this kind of situation in the market.

It was not expected that usdc is going to lose its value and even people are speculating that this is going to be another situation like UST. You know how things happened with Luna and because of this tragic incident lot of people lost their hard-earned money. It's really good to see that circle can manage the coin and now it is back to its range which is $1 and with this people must have got their confidence back in the coin. 

![image.png](https://images.hive.blog/DQmRjKXsRaEbDDQ7mkUgQ3Ej39nCQh8g2YznVugLRB1VH1N/image.png)

More people don't rely on these stablecoins because they feel this is equal to the US dollar and they can keep any amount of fun just by looking into the market and seeing a possible opportunity to buy and book profit. We have to understand that stablecoins have become an important part of the cryptocurrency ecosystem so we cannot stay away from these points but at the same time, you also need to give care. Diversification is the best way forward to avoid any surprises that might come be the loss-making situation for us. Even now when the market is doing good then also it is not recommended to convert it against any stablecoins because that might not be a good decision. It is very important to keep attracted to the market to see how things are moving and accordingly we can plan out our strategy. 

> USDC is a type of cryptocurrency called a stablecoin which is supposed to be pegged one-to-one with the U.S. dollar. It is backed by real assets including U.S. Treasurys and cash and is the second-largest stablecoin in existence, behind tether. 


![image.png](https://images.hive.blog/DQmWuUzsZJqoNYizWjBP6ffpop8ToSi67EyT43NBMpxKbsz/image.png)

[src](https://www.coingecko.com/en/coins/usd-coin)

Risk has involved any investment so we can assume the same with stable coins as well where we are expecting that valuable not fluctuate but it happens sometimes depending on all the markets we have and what negative scenarios are there. It was never expected that one of the leading banks in America will be collapsed organized and this has affected the market badly in terms of liquidity. They were more than however in very less time forgetting the confidence which has shown in the value appreciation for usdc. 

Circle has announced that 3.3 billion dollars of its cash reserve will be available soon and properly this is the reason why people have started buying or trading with USDC. Whenever know which kind of problems we can expect in the market but price fluctuation is one of the common problems that we see a couple of times a year. 


Negativity is not good for the Crypto market because it is going to affect the coconut economy in the market as well as will also not going to help people change their mindset I am considered a tradable asset. Many countries are conceiving to as one of the options that they can use for the investment operating purpose how ever this is not going to be legal tender in the country. This is good as far as the government is aligned with it and they can alternate ways that can create more demand for the USB and seedling it is pegged coin that is equal to $1.

***Thank you*** 







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