USDC Whale Holdings Percentage Hits A Two-Year Low
August 22 2022 - 10:38PM
NEWSBTC
The continuous price fluctuations in the crypto market considerably
impact the Circle’s stablecoin, USD Coin (USDC). The recent
performance of its whales’ addresses is making a more southern
move. USD Coin records a drop of almost a two-year low in its
primary wallet addresses. 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. Related Reading: Bitcoin Price
Witnesses Sharp Sell-Off – Further Volatility On Chart? A report on
the second-largest stablecoin by market cap revealed that the US
Treasury Department’s sanction on Tornado Cash is a contributory
factor against USDC’s 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. 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. This action brought a
reduction in USDC’s 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. 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. Also, Glassnode data confirmed that the USDC’s
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. 📉 $USDC Number of Exchange Deposits
(7d MA) just reached a 17-month low of 138.250 Previous 17-month
low of 138.810 was observed on 23 March 2021 View
metric:https://t.co/yhG6sKrvi6 pic.twitter.com/tB9ZoQVs7j —
glassnode alerts (@glassnodealerts) August 22, 2022 Also, there’s
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. All
Is Not Lost For USDC 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. 📈 $USDC Mean Transaction Volume (7d MA) just reached
a 3-year high of 228,721.050 USDC Previous 3-year high of
226,056.588 USDC was observed on 19 June 2022 View
metric:https://t.co/VUwnIn7YLP pic.twitter.com/FDrgkDUIuZ —
glassnode alerts (@glassnodealerts) August 22, 2022 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’s market cap. But it has lost its previous gains
following the Tornado Cash event. Related Reading: Bitcoin Corrects
17%, But Market Expects Fresh Rally Report Says 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. Featured image from Pixabay,
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