The past 24 hours saw the cryptocurrency market take a bit of a breather as it managed to recover around $16 billion in terms of its total capitalization.

That said, the turmoil around USDC continues, although the stablecoin recovered to about $0.95 as Circled issued a somewhat reassuring statement.

USDC Recovers to $0.95

USDC’s depeg has been the hottest topic in the cryptocurrency market throughout the past 48 hours. It’s the second-largest stablecoin by means of total capitalization and the fifth-largest cryptocurrency altogether.

As a stablecoin, USDC’s price should never fluctuate from $1, but yesterday, it crashed and burned below $0.90 for the first time. This happened Silicon Valley Bank – one of the largest financial institutions in the fintech world, was essentially shut down by regulators.

It turns out that Circle holds a whopping $3.3 billion of the cash reserves backing USDC at SVB, suggesting that until the bank’s issues are resolved (if), USDC is not backed 1-to-1 by the USD.