“How the tables turned” is one of the most common phrases used in this “niche” but emerging world of cryptocurrency.
US dollar circle [USDC] He witnessed the wrath of a moribund instrument after he showed his will to climb to first place. So what went wrong with this stablecoin?
Circle once popularized after overtaking Tether’s USDT with number of daily transactions on Ethereum [ETH] blockchain. It has also registered a significant increase in its usefulness in the wake of increased demand, be it institutional or retail.
However, things may have gone against the stablecoin as the US dollar continues to see a bleak scenario over the past month.
Data showed that the market capitalization of USDC fell by more than 2% to $51 billion on CoinMarketCap. In August, that figure was about $54 billion. Below is a three-month scenario for the above-mentioned stablecoin.
In addition, I also took one USDC instrument massive blow, According to an in-depth analysis by Messari analysts, especially after the Tornado Cash penalty fiasco.
The USDC issuing circle started blocking wallets linked to Tornado Cash, which were subject to sanctions by the United States
More than $70,000 have been frozen on wallets linked to the sanctioned Tornado Cash. Ergo, along with the decision of the US regulator.
Did it have any repercussions other than a drop in market value? Well, yes 100%.
Maker, the DeFi protocol behind the DAI stablecoin, has reduced its exposure to “central” stablecoins, such as the US Dollar Circle (USDC) coin. The truth is that double Ceiling its debt on a tethered Ethereum (stETH) vault.
Meanwhile, Binance She announced that she will end her support for USDC trading pairs. Instead, the crypto exchange will be converted automatically USDC deposit in BUSD.
Going forward, USDC supply and growth have also been affected. Once at over 32% and challenging USDT, it was at press time at 29.3% market share.
But it is not. Dominant buyers/whales joined this anti-USDC party along with other guests. Percentage of USD circle held by major wallet addresses Projection to its lowest level in nearly two years.
In addition, US dollar reserves revealed a decline in holdings for about a week. After it was worth about $4.45 billion on August 17, its current value is $3.26 billion, which is a 4% decrease from the last 24 hours. Other indicators also gave a similar picture.