USDC running in ‘Circle’s: Is the stablecoin losing out on its top spot 

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Cir­cle, the par­ent com­pa­ny of USDC, which is the sec­ond largest sta­ble­coin in terms of mar­ket cap­i­tal­iza­tion, reduced its sta­ble­coins sup­ply by 10%. Will the reduc­tion in the sup­ply have a neg­a­tive impact on USDT’s future. Or, would this act as a bump in the road for USDC’s race to the top?

A glance over data 

From 15 Sep­tem­ber to 22 Sep­tem­ber, Cir­cle issued a total of about $1.8 bil­lion USDC. Post that, it end­ed up redeem­ing about $2.2 bil­lion USDC. This led to reduc­ing the cir­cu­lat­ing sup­ply by about $500 mil­lion. At the time of writ­ing, the USDC cir­cu­lat­ing sup­ply stood at $50 bil­lion and down by 10% from its peak. 

It’s no sur­prise that USDC has been com­pet­ing with USDT for the top spot in terms of mar­ket cap­i­tal­iza­tion for quite some time. How­ev­er, a loss of $500 mil­lion could very well get in the way of USDC claim­ing the top spot. Fur­ther­more, the dif­fer­ence between each of the sta­ble­coins mar­ket cap was about 17 bil­lion. If USDC can­not improve upon the growth, it would not be able to sur­pass USDT.

It’s a race to the finish then

How­ev­er, there are some fac­tors that indi­cate that USDC isn’t tap­ping out just yet. USDC’s social pres­ence, despite its cur­rent state, remained unscathed. Over the past month, USDC has shown impres­sive growth in terms of gar­ner­ing social media attention.

Their social engage­ments have grown by 9.8% and their social men­tions have grown by 16.8% over the past month. This devel­op­ment could prove to be fruit­ful for USDC in the long run.

There are oth­er pos­i­tives for the token as well, the num­ber of unique address­es hold­ing the sta­ble­coin increased over the past month. Addi­tion­al­ly, big address­es, ones hold­ing more than $1 and $10 mil­lion in assets, have also shown their inter­est in the stablecoin.

Accord­ing to Mes­sari, address­es hold­ing more than $1 mil­lion have increased by 4.20% and address­es hold­ing more than $10 mil­lion USDC have grown by 3.20% over the past sev­en days.

Source: Coin­Mar­ket­Cap

Although USDC man­aged to gath­er some pos­i­tive fac­tors in its cor­ner, there were some neg­a­tives too that made their way. USDC’s exchange reserve has been going on a down­turn since the past month, indi­cat­ing that there is low­er buy­ing pres­sure at the moment.

Source: Cryp­to­Quant

Accord­ing to Cryp­to­Quant, there has been a decline in USDC’s trans­fer vol­ume and the num­ber of active address­es have gone down as well. USDC’s trad­ing vol­ume depre­ci­at­ed by 15% between 25 and 26 Sep­tem­ber, and the num­ber of DeFi trans­ac­tions wit­nessed a freefall of 20% as well.

These bear­ish indi­ca­tors cou­pled with the fact that mul­ti­ple exchanges such as Binance and WazirX  have delist­ed the sta­ble­coin from their plat­form, could neg­a­tive­ly effect USDC’s future. 

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