The continuous price fluctuations in the crypto market considerably impact the Circle\u2019s stablecoin, USD Coin (USDC). The recent performance of its whales\u2019 addresses is making a more southern move. USD Coin records a drop of almost a two-year low in its primary wallet addresses.<\/p>\n
According to data from Glassnode, a crypto analytics company, USD Coin metrics are becoming less impressive. For example, the stablecoin had recent sell-offs and drops that cut down its market cap.<\/p>\n
A report on the second-largest stablecoin by market cap revealed that the US Treasury Department\u2019s sanction on Tornado Cash is a contributory factor against USDC\u2019s performance. Not only did the sanction create a loophole for the drop of USDC capitalization, but it also impacted that of Tether, its top competitor.<\/p>\n
Following the sanction of Tornado Cash, Circle, the parent the developer of USD Coin, froze about 75,000 USDC tokens. The coins were held by some addresses connected to Tornado Cash.<\/p>\n
This action brought a reduction in USDC\u2019s market cap. But Tether got an opposite performance on its part. As a result, USDT markets witnessed an increase of about $2 million a few days after the US Treasury sanction.<\/p>\n
Many commentators in the industry are comparing the growth and decline of market caps for USDT and USDC. The majority opines that investors made a shift from USDC to USDT. However, data from on-chain analytics providers indicated a massive sell-off over the past two weeks.<\/p>\n
Also, Glassnode data confirmed that the USDC\u2019s seven-day moving average of exchange deposits reached a 17-month low of 138250. This was against a similar value of the bottom of 138.810 recorded in March 2021.<\/p>\n
$USDC Number of Exchange Deposits (7d MA) just reached a 17-month low of 138.250<\/p>\n
Previous 17-month low of 138.810 was observed on 23 March 2021<\/p>\n
View metric:https:\/\/t.co\/yhG6sKrvi6 pic.twitter.com\/tB9ZoQVs7j<\/p>\n
\u2014 glassnode alerts (@glassnodealerts) August 22, 2022<\/p>\n\n
Also, there\u2019s an indication that the holding of the top 1% addresses for USDC hit 87.667%. This is equivalent to a 22-month low for a stablecoin.<\/p>\n
All Is Not Lost For USDC<\/p>\n
However, USDC saw an increase in an aspect of its performance despite its reduced market cap. It gained in its weekly mean transaction volume as it hit a three-year high. The value showed up to 228,721.050 USDC tokens. This latter growth exceeds the former one it recorded in June this year which was 226, 056.588 USDC.<\/p>\n
$USDC Mean Transaction Volume (7d MA) just reached a 3-year high of 228,721.050 USDC<\/p>\n
Previous 3-year high of 226,056.588 USDC was observed on 19 June 2022<\/p>\n
View metric:https:\/\/t.co\/VUwnIn7YLP pic.twitter.com\/FDrgkDUIuZ<\/p>\n
\u2014 glassnode alerts (@glassnodealerts) August 22, 2022<\/p>\n\n
There has been a lot of hype on USDC in contending with USDT in July 2022 as the leading stablecoin of the year by market cap. USDC moved within $11 billion of Tether\u2019s market cap. But it has lost its previous gains following the Tornado Cash event.<\/p>\n
Total USDC market cap records a two-year low l USDCUSDT on TradingView.com<\/p>\n
Tether is yet to comment on its position on whether to freeze USDT tokens connected to Tornado Cash or not. However, a possible negative legal implication exists for firms that condone assets linked to the sanctioned crypto mixer platform.<\/p>\n
Featured image from Pixabay, Charts from TradingView.com<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
The continuous price fluctuations in the crypto market considerably impact the Circle\u2019s stablecoin, USD Coin (USDC). The recent performance of its whales\u2019 addresses is making a more southern move. USD Coin records a drop of almost a two-year low in its primary wallet addresses.<\/p>\n
According to data from Glassnode, a crypto analytics company, USD Coin metrics are becoming less impressive. For example, the stablecoin had recent sell-offs and drops that cut down its market cap.<\/p>\n
A report on the second-largest stablecoin by market cap revealed that the US Treasury Department\u2019s sanction on Tornado Cash is a contributory factor against USDC\u2019s performance. Not only did the sanction create a loophole for the drop of USDC capitalization, but it also impacted that of Tether, its top competitor.<\/p>\n
Following the sanction of Tornado Cash, Circle, the parent the developer of USD Coin, froze about 75,000 USDC tokens. The coins were held by some addresses connected to Tornado Cash.<\/p>\n
This action brought a reduction in USDC\u2019s market cap. But Tether got an opposite performance on its part. As a result, USDT markets witnessed an increase of about $2 million a few days after the US Treasury sanction.<\/p>\n
Many commentators in the industry are comparing the growth and decline of market caps for USDT and USDC. The majority opines that investors made a shift from USDC to USDT. However, data from on-chain analytics providers indicated a massive sell-off over the past two weeks.<\/p>\n
Also, Glassnode data confirmed that the USDC\u2019s seven-day moving average of exchange deposits reached a 17-month low of 138250. This was against a similar value of the bottom of 138.810 recorded in March 2021.<\/p>\n
$USDC Number of Exchange Deposits (7d MA) just reached a 17-month low of 138.250<\/p>\n
Previous 17-month low of 138.810 was observed on 23 March 2021<\/p>\n
View metric:https:\/\/t.co\/yhG6sKrvi6 pic.twitter.com\/tB9ZoQVs7j<\/p>\n
\u2014 glassnode alerts (@glassnodealerts) August 22, 2022<\/p>\n
Also, there\u2019s an indication that the holding of the top 1% addresses for USDC hit 87.667%. This is equivalent to a 22-month low for a stablecoin.<\/p>\n
All Is Not Lost For USDC<\/p>\n
However, USDC saw an increase in an aspect of its performance despite its reduced market cap. It gained in its weekly mean transaction volume as it hit a three-year high. The value showed up to 228,721.050 USDC tokens. This latter growth exceeds the former one it recorded in June this year which was 226, 056.588 USDC.<\/p>\n
$USDC Mean Transaction Volume (7d MA) just reached a 3-year high of 228,721.050 USDC<\/p>\n
Previous 3-year high of 226,056.588 USDC was observed on 19 June 2022<\/p>\n
View metric:https:\/\/t.co\/VUwnIn7YLP pic.twitter.com\/FDrgkDUIuZ<\/p>\n
\u2014 glassnode alerts (@glassnodealerts) August 22, 2022<\/p>\n
There has been a lot of hype on USDC in contending with USDT in July 2022 as the leading stablecoin of the year by market cap. USDC moved within $11 billion of Tether\u2019s market cap. But it has lost its previous gains following the Tornado Cash event.<\/p>\n
Total USDC market cap records a two-year low l USDCUSDT on TradingView.com<\/p>\n
Tether is yet to comment on its position on whether to freeze USDT tokens connected to Tornado Cash or not. However, a possible negative legal implication exists for firms that condone assets linked to the sanctioned crypto mixer platform.<\/p>\n
Featured image from Pixabay, Charts from TradingView.com<\/p>\n
<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-6103","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/6103","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=6103"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/6103\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=6103"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=6103"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=6103"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}