In the last 24 hours, bitcoin gained 18.4 per cent to more than $24,000, while ether advanced 15 per cent to nearly $1,700

The value of leading crypto currencies increased Monday amid U.S. government plans to safeguard Silicon Valley Bank (SVB) and Signature Bank depositors.

The Federal Reserve issued statements on Sunday with one clear message: SVB’s depositors, both insured and uninsured, will get assistance in a way that will ‘fully protect’ their deposits.

The risk of a banking contagion was lower at the beginning of the week than last Friday, but not zero.

After a rally in the price of bitcoin and other crypto assets, the overall crypto market exceeded $1t in value on Monday, up nearly 14 per cent day over day.

In the last 24 hours, bitcoin gained 18.4 per cent to more than $24,000, while ether advanced 15 per cent to nearly $1,700, according to CoinMarketCap data. The two crypto currencies, which are the biggest in terms of market capitalization, are trading in parallel with one another.

USD Coin, the second biggest stablecoin, also recouped nearly 4 per cent in the last 24 hours after the news that deposits would be safeguarded, as per CoinMarketCap data.

The alleged stablecoin depegged from its $1 peg for three days, going down 88 cents, after uncertainty around the $40b USD Coin empire and the firm shared that $3.3b, or nearly 8.2 per cent, of its total supply of reserves were held in SVB.

Circle declared the reserve risk was ‘removed’ since the funds became available on Monday morning.

Trust, safety and 1:1 redeemability of all USDC in circulation is of paramount importance to Circle, even in the face of bank contagion affecting crypto markets, Jeremy Allaire, co-founder and CEO of Circle, said in a statement. We are heartened to see the U.S. government and financial regulators take crucial steps to mitigate risks extending from the banking system.

USD Coin’s market capitalization is nearly $40.5b, with $10.9b in daily traded volume, down 1 per cent in the last 24 hours, as per CoinMarketCap data. At one time, USD Coin was millicents away from its $1 peg at $0.993, 3.9 per cent higher in the last 24 hours.

The crypto market, besides other leading industries, had a volatile week after Silvergate Capital, one of the biggest banks to offer services to crypto firms, shared it was shutting down operations and liquidating its banking division.