The Circle stablecoin has taken a major hit from the industry-wide volatility that has become all too common in the cryptocurrency market. $1 Coin (USDC). In addition, the whale’s wallets also seemed to be displaying the same symptoms. Main wallet addresses for USD Coin have dropped to near two-year lows, and this seems to be where the story is starting to take shape.
For example, Glassnode’s data indicates that USDC’s indicators have recently deteriorated. The stablecoin’s market capitalization has been impacted by recent market events and sell-offs.
Why Does Everything Exist?
Because of the U.S. government’s crackdown on the cryptocurrency exchange Tornado Cash, the value of Tether (USDT) and USD Coin (USDC) dropped significantly. Because more than 75,000 USD Coins were frozen from wallets connected to Tornado Cash, the cryptocurrency’s issuer, Circle, saw its market capitalization decline. In contrast, USDT capitalization increased by nearly $2 billion following the imposition of sanctions.
U.S. dollar deposits have fallen to their lowest level in 17 months, as measured by the 7-day moving average (Glassnode data). When compared to the previous year, March 2017 was 138,810 lower. The rise and fall of each stablecoin has been compared, and some have speculated that investors may have switched their USDC holdings to USDT instead. Glassnode reveals that 87.667% of USDCs are currently held by the top 1% of wallets, a 22-month low.
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Nonetheless, Here’s Some Outstanding News
Although USDC’s market cap is relatively low, it has shown strength in one area recently. The average weekly transactions made with the stablecoin reached a new high not seen in the past three years. The USD is competing with USDT to be the leading stablecoin by market capitalization in 2022. The market value of USDC has increased to within $11B of that of USDT.
As a result of the Tornado Cash crisis, however, the latter lost all of its progress made thus far. When measuring market cap, USD Coin has not moved from fourth place. Consequently, multiple expectations are placed on the stablecoin.
In the meantime, the cryptocurrency market attempts to recover from recent losses. The global cryptocurrency market capitalization stood at $1.03 trillion at the time of publication, an increase of 2.24 percent over the previous twenty-four hours. In addition, the price of Bitcoin rose 1.78 percent to $21,360 during this publication.
Nonetheless, the market remains weak, and bears may gain control once more. In spite of attempts to push prices higher, bearish patterns have recently emerged. The upcoming sessions are still crucial to follow. Stay for the most recent crypto updates.