XRP Was Used As Solution To Protect Funds During USDC Depegging• March 11, 2023 12:10 pm • Comments
As the entire crypto and financial industry is still reacting to the depegging of the stable coin USDC and the collapse of Silicon Valley Bank, it looks like XRP has proved to be useful in such situations.
Some financial institutions have started to use XRP as a way to preserve wealth and assets due to its decentralized nature which is completely separate from fiat currencies such as the USD.
It was just reported that Reaper Financial, a blockchain financial services company, has been converting the USDC in its funds to XRP in the middle of the crisis.
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The company has stated that they will be moving the capital in their Permanent DRIP Fund to XRP until there is stability again in the market.
As a result, it shows that some companies have just as much confidence in XRP’s decentralized nature as Bitcoin which is known to be the ultimate hedge against such financial crisis.
Due to a potential de-pegging event the USDC in the Permanent DRIP Fund has been converted to $XRP until stability returns.
— Reaper Financial (@TheReaperCoin) March 11, 2023
“Due to a potential de-pegging event, the USDC in the Permanent DRIP Fund has been converted to XRP until stability returns. We will update as the situation evolves,” the Ripple lawsuit participant stated in a tweet.
At the time of writing, USDC was still below its dollar peg at $0.918. At press time, stablecoins DAI, USDD and FRAX were trading below their dollar peg. According to Nansen, Circle has burned $2.34 billion USDC in the last 24 hours.
About 70%, or $1.65 billion, was burned in the last eight hours, it says. Exchanges have also taken action in the wake of the recent event.
Binance has suspended the auto conversions from USDC to BUSD due to the current market conditions.
The cryptocurrency exchange Coinbase has decided to suspend USDC:USD conversions over the weekend.
Another positive thing to note is that despite the total crypto market cap dipping below $1 trillion again, XRP’s price has remained relatively the same.
At the time of writing, XRP is recorded to be trading at 36 cents which means that it has not changed relatively in the past 24 hours unlike the rest of the crypto markets.
With that being said, due to the overall state of the market, it seems that the token has lost some bullish momentum and may enter a period of consolidation again until stability in the market returns.
Immediate recovery in price is unlikely as stable coins represent a large portion of the crypto industry so many institutional investors may be sitting on the sidelines to confirm how this will play out first.
— David Sicairos ☀️ (@SicairosDavid) March 11, 2023
While an immediate recovery in XRP price would be a pipe dream, considering the many unfavorable conditions in the crypto market, a lot of focus could be directed to the bulls’ ability to find support and uphold it, at least for this weekend.
That said the pressure mounting on top of the $18.5 billion crypto cannot be understated, considering the loss of key leverages that briefly came into the picture in January.
For instance, XRP now holds below all the major applied moving averages, including the 200-day Exponential Moving Average (EMA) (line in purple), the 100-day EMA (line in blue), and the 50-day EMA (line in red).
The next tentative support would be provided by the buyer congestion at $0.35. Keeping this support intact is critical for the immediate resumption of the uptrend. Otherwise, XRP price may nosedive to test $0.30.
— Quick Crypto News (@QuickCryptoNews) March 11, 2023
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