USDC stablecoin
The records of USDC stablecoin news are the records of their instabilities. It is marked by major economic events that further showcase their inherent instabilities. Several studies have also analyzed the effects of these events on crypto asset market dynamics, including the COVID pandemic, the consequences of stable coin failure, and announcement events, giving insights into behavioral and economic impacts on stable coin. Furthermore, studies, including Hoang and Baur, have explained how stablecoins, while less volatile than Bitcoin, Today changing in Ethereum coin in the Trading market exhibit higher instability compared to conventional assets such as fiat money and gold.
This susceptibility is largely attributed to their high correlations with the price movements of Bitcoin, which were noted by Brik et al. as having bidirectional effects, rapidly capturing Bitcoin’s performance in stablecoin prices. Even in typical circumstances, stablecoins’ function as diversifiers and havens, as discovered by Wang et al., is largely dependent on these crypto-market processes, Top 7 cryptocurrencies updates news July 2025, shaping their suitability as stable financial assets in times of economic duress.
More recent threads within the literature push our knowledge of stablecoins’ vulnerability and co-instabilities. The above-mentioned studies, though, examined various periods. These studies have failed to take into account the listing of USDC on Coinbase. Thanh et al. spoke to the COVID era, but not Gregory et al. Further, best online earning games without invest in dollars these papers didn’t address how particular events influence stablecoin volatility at varying periods and explore the longer-term interconnectedness that arises prior to and following such events as the failure of SVB.
We have collectively examined the co-movement and instability of those primary stablecoins, USDC, USDC, DAI, and TUSD. Throughout the economic incidents mentioned in the literature, specifically the COVID pandemic and crashes like Iron Finance, Terra-Luna, FTX, Silicon Valley Bank SVB, and others now no longer researched within the literature, like Daily changing in Coinbases USDT trading listing.
We employed a wavelet-based method to analyze and write the history of stablecoins’ instabilities and co-movement since it goes beyond typical time-series techniques by working in a combined time-frequency space. By using wavelet analysis, we used the wavelet power spectrum WPS measure that enables us to identify localised periods of high volatility among stablecoins, while wavelet coherence measures how well two stablecoins move together over various time horizons, Best Binance wallet-3 latest update 2025 and by using Wavelet Coherence Phase Difference WCPD, we determine the leading and lagging patterns in such a relationship.
Literature Review
USDC Stablecoins News 2025 are often explained as digital funds that combine aspects of fiat currency with the volatility of cryptocurrencies to reduce price swings and potentially serve as a payment medium as well as a store of value. Yet, despite their attempts to be stable, they are still subject to price volatility and liquidity runs, which create excessive divergences from their intended peg. From a theory of finance perspective, asset pricing and stability are determined by liquidity, investor sentiment, information asymmetry, and the form of governance. Stablecoins, whilst differing technologically from traditional financial instruments, are still guided by rules of thumb.
Specifically, stablecoin stability is influenced by the quality of the reserve assets, the intent of issuer to maintain the peg, latest USDC stablecoin audit reports July 2025, and the quality of the underlying technology. Therefore, if market players are apprehensive about losing par value, stablecoins can be subjected to liquidity runs. Recent empirical studies throughout our analysis from January 2020 to June 2024 have revealed stablecoin stability as well as its complex interrelations with crypto and traditional markets.
Smales and Grobys et al. established that stablecoins do not determine the volatility of the wider crypto market in any independent manner, but are influenced by that of Bitcoin and Ethereum. Brik et al. established bidirectional effects of Bitcoin on stablecoins, proposing instant incorporation of Bitcoin performance into stablecoin prices, representing market efficiency. Hairudin and Mohamad, best USDC stablecoin digital dollar impact, and Łęt et al. pointed out short-term volatility reactions of USDT to market disturbances.
Fernandez-Mejia examined spiking price activity in stablecoins in comparison to financial and crypto assets indices and concluded asymmetrical stablecoin price responses. Finally, Lyons and Viswanath-Natraj noted that innovations such as USDC shift to the Ethereum blockchain have increased its arbitrage efficiency and lowered peg deviations notably.
Market capitalization
According to their market capitalisation and availability of data, we considered 1642 daily closing price observations of major types of cryptocurrency, USDT, USDC, DAI, and TUSD. The sample time begins on 1 January 2020 to 30 July 2025. This time enables us to examine stablecoin market dynamics, Ana listing chart pattern in trading field strategies, and co-movement in subsequent events documented in the literature and identified through empirical studies: COVID-19, the Coinbase listing of USDT, the Iron Finance crisis, the elimination of DAI Price Stability Module PSM fees, the Terra-Luna crisis, the FTX crisis, the SVB crisis, and the Delisting of TUSD buying and selling pairs in Binance.
We chose the exact dates of the events from the established literature and primary announcements in the news. Nonetheless, it is important to note that market reactions tend to lead up to and extend beyond the referred dates. For instance, while we mention 11 March 2020 as the turning point for COVID-19, the economic and financial impact of the pandemic started earlier and extended significantly longer after the date. Equally, while 8 November 2022 is the date of FTX’s collapse, the irresolution around that event expressed itself before the date selected and persisted afterwards. So we read the results in the wider temporal frame, latest USDC trading signal strategies 2025 and not rigidly confined to isolated points in time.
Summary
We thoroughly examined stablecoin stability and interconnectedness through a qualitative method, including the volatility of daily stablecoin returns, economic events over the period, literature review, and sophisticated wavelet methods. Our findings highlight an evident reduction in volatility after the listing of USDC on Coinbase on 22 April 2021, as indicated by lower standard deviations and smaller ranges between the highest and lowest returns. The scalogram WPS analysis also ended up detecting important events not yet discussed in the literature.
We were also able to identify with this technique events to be studied further, delisting of Binance’s TUSD, events with the greatest systemic impact, COVID-19, listing on Coinbase, and the SBV collapse, best crypto exchange to buy now 2025, and the stablecoin that responded most to these events, USDC’s response to the SBV collapse. We also determined medium and high coherence among the stablecoin pairs by the wavelet coherence method. Our findings prove that exposure to USDT and USDC during downward conditions offers a hedge against the risk of default or severe devaluation.
On the other hand, after the listing of Tether, the USDC-DAI pair exhibited positive co-movement during periods of volatility, which precludes the two from being included in a common portfolio. Hence, our results indicate that the listing of USDC on Coinbase has been the cornerstone of stablecoin instability. We can also confirm that the Terra-Luna crash was the cornerstone event in the co-instability history of stablecoins, wherein, best crypto fear and greed indexing in the long run, the stablecoins became more correlated and had negative co-movement between the central stablecoin, USDT, and the rest. Trading are not acceptable in Islam.