$USDC You're right to question the stability of USDC, especially with the recent news about the $1.1 billion investment. Let's break it down [2][3]:
- *Stablecoin Design*: USDC is designed to maintain a 1:1 peg with the US dollar, meaning its value should theoretically remain stable. However, market dynamics can sometimes cause deviations.
- *Market Forces*: Despite being backed by reserves, stablecoins like USDC can experience price fluctuations due to market demand, liquidity, and external factors. This might explain the ups and downs you've observed.
- *Depegging Incidents*: There have been instances where USDC deviated from its peg, such as during the Silicon Valley Bank crisis in March 2023, when it traded above $1.06. These events highlight the potential for stablecoins to face challenges in maintaining their peg.
- *Reserve Backing*: USDC is backed by a reserve of assets, which provides confidence in its stability. However, the composition of these reserves and the transparency around them
