USDC traded at 87 cents in Asian morning hours, reaching lifetime lows. It has since rebounded to just over 90 cents as of Asian evening hours.

Some traders bet on a gradual recovery to the $1 mark, buying the relatively cheap USDC for a potential 10% gain should the tokens repeg to the intended dollar mark.

Leverage could potentially magnify returns for traders betting on a recovery. As such, futures funding rates on the crypto exchange Bybit jumped to as much as 0.3% on Saturday morning.

That means traders made as much as 0.3% in fees from their total market position. The funding was paid by traders who shorted USDC, paying over 0.4% to borrow the asset and bet on lower prices.

Some $4 million in USDC futures were liquidated in the past 24 hours, Coinglass data shows.

Elsewhere, Maker’s decentralized stablecoin dai (DAI) also depegged from its intended $1 mark on Saturday amid market stress, CoinDesk reported. It hit an all-time low of 88 cents.

Friday’s collapse of Silicon Valley Bank (SVB) caused a market-wide drop for cryptocurrencies in the past 24 hours as traders found some of the industry’s major players had exposure to the bank.

These players included U.S.-based stablecoin issuer Circle held a part of its USDC stablecoin’s cash reserves at Silicon Valley Bank as of Jan. 17, according to the firm's latest attestation.

A Circle spokesperson said late Friday that SVB was one of the six banks that the firm used "for managing the approximately 25% portion of USDC reserves held in cash."