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Thoughts on $USDC's current stability around par
Been watching $USDC pretty closely lately, and it's holding remarkably firm around that $0.9996 level. With the current daily range, it really feels like market makers are stepping in to keep it pinned. If we saw a sustained break below $0.9995, I'd start to question the conviction, but so far, it's just been a few bps deviation. My read is that the market's expecting it to stay tight, reflected in option pricing, which means any significant move off par would likely be a black swan.
2 comments · 1 points
It's less about market makers and more about redemption mechanisms. If it trades below par, smart money redeems for $1, effectively creating that floor. It's built into the stablecoin's design.