Regular price fluctuations within the crypto space have affected Circle’s stablecoin significantly. USD Coin (USDC). Moreover, its whale wallets appeared to flash similar signs too. The narrative emerges as the USD Coin’s primary wallet addresses have plummeted towards two-year lows.
For instance, Glassnode’s data shows that USDC’s indicators deteriorated recently. The stablecoin has seen its market capitalization hit by the latest market events and sell-offs.
What Behind Everything?
The United States sanctions against crypto mixer Tornado Cash triggered a substantial effect on the capitalization of Tether (USDT) and USDC. USD Coin saw its market cap dropping after Circle, its issuer, froze more than 75K USDCs held by wallets associated with Tornado Cash. Contrarily, USDT capitalization jumped by nearly $2 billion some days after the penalties.
The 7d MA of USD exchange deposits hit 17-month lows at 138,250 (Glassnode data). Comparatively, it recorded the 138,810 lower value in March last year. Considering the similarity between each stablecoin’s rise & fall, several individuals have stated that users could have shifted their money for USDT from USDC. Glassnode reveals that the top 1% of wallets now hold 87.667% of USDCs, a 22-month low.
Nevertheless, Here’s Some Impressive News
Despite the small market capitalization, USDC saw improved performance in one sector. The stablecoin saw a surge in weekly mean transfer volume, hitting a 3-year peak. USD has seen many expectations as it rivals USDT to be the leading stablecoin in 2022 by market valuation. USDC’s market value has surged to within $11B of USDT’s.
Nevertheless, the latter erased its previous gains following the Tornado Cash crisis. USD Coin remains the fourth-largest crypto by market capitalization. And that attracts multiple expectations from the stablecoin.
Meanwhile, the crypto market attempts upsides after the latest declines. While publishing this post, the global cryptocurrency market capitalization stood at $1.03 trillion, gaining 2.24% over the past 24 hours. Also, BTC gained 1.78% to change hands at $21,360 during this publication.
However, the market remains weak, and bears could dominate one more. Bearish tendencies have showcased after upside attempts. The coming sessions remain essential to watch. Stay around for the latest crypto updates.
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