Binance has announced that it will open 3 more cryptocurrencies after resuming USDC trading pairs, which it suspended conversions.
Binance opens these 3 cryptocurrencies for trading on cross and isolated margin
The largest centralized exchange reported that it has listed USDC against 3 cryptocurrencies on a cross and isolated margin, in a listing announcement it shared recently. The listed cryptocurrencies and transaction pairs are as follows:
- New cross-margin pairs: BTC/USDC, ETH/USDC, USDC/USDT
- New isolated margin pairs: BTC/USDC, ETH/USDC, USDC/USDT
Coinbase and Binance suspend conversions as USDC surges
The largest centralized crypto exchanges Binance and Coinbase have temporarily suspended their USDC conversions amid the crisis caused by the collapse of Silicon Valley Bank on the night of March 10. The decisions to USDC came amid concerns that Circle, the company behind the stablecoin, is holding some of USDC’s cash reserves at the bankrupt Silicon Valley Bank.
Citing “current market conditions,” without naming Silicon Valley Bank, Binance said it has temporarily suspended the automatic conversion of USDC to BUSD.
Binance has temporarily suspended auto-conversion of USDC to BUSD due to current market conditions, specifically related to high inflows & the increasing burden to support the conversion.
This is a normal risk-management procedural step to take while we monitor the situation.
— Binance (@binance) March 11, 2023
“During periods of peak activity, conversions are based on USD transfers cleared by banks during normal banking hours,” said Coinbase, which did not explicitly mention the name of Silicon Valley Bank.
We are temporarily pausing USDC:USD conversions over the weekend while banks are closed. During periods of heightened activity, conversions rely on USD transfers from the banks that clear during normal banking hours. When banks open on Monday, we plan to re-commence conversions.
— Coinbase (@coinbase) March 11, 2023
Centralized cryptocurrency exchanges see huge spike in transactions after USDC stabilized
As Binance begins re-enabling USDC trading pairs, centralized exchanges have seen a massive increase in usage and balance, with the stablecoin restoring dollar stability. According to data provided by Messari, activity on CEXs hit a 12-month high as USDC lost price stability. Exchanges such as Binance, OKX, and Kraken all saw an increase in activity during this period.
Meanwhile, Binance was the leader in terms of foreign exchange balance, with $31.9 billion on its platform. By comparison, OKX and Bitfinex placed second and third with $5.1 billion and $3.2 billion, respectively.
Experts are pessimistic about USDC despite positive data
The inability of USDC to maintain its price stability against the US dollar in recent days has caused concern among investors and fund outflows. As Kriptokoin.com, we have covered the USDC crisis in full detail in this article.
Messari data shows that Circle has removed approximately 3.9 billion USDC from circulating supply since last Friday, with the current circulating supply being 39.5 billion USDC.
“It will probably take some time before market participants feel comfortable parking their holdings in any stablecoin for long periods of time,” Joe DiPasquale, CEO of crypto fund manager BitBull Capital, said in his recent statements, addressing investor sentiment. USDC currently continues to fluctuate in the $0.9994 region despite all assurances.
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