The proportion of USD Circle (USDC) stablecoins held by major wallet addresses dropped to the cheapest reason for almost 2 yrs because the cryptocurrency market downturn continues.
Cryptocurrency analytics firm Glassnode has released the most recent data on USDC metrics, reflecting a current sell-from the second greatest U.S. dollar-backed stablecoin by market capital.
$USDC Percent Supply Held by Top 1% Addresses just arrived at a 22-month low of 87.667%
Previous 22-month low of 87.669% was observed on 20 August 2022
View metric:https://t.co/EU57HUtLdu pic.twitter.com/dG7Qj1bAjF
— glassnode alerts (@glassnodealerts) August 22, 2022
As Cointelegraph formerly reported, sanctions enforced on cryptocurrency mixer Tornado Cash through the U.S. Treasury Department were built with a marked impact on the capital of both USDC and it is greatest competitor, Tether (USDT).
While USDT markets saw development of almost $2 billion dads and moms following a sanctions, USDC’s market cap reduced after its issuer Circle made the decision to freeze some 75,000 USDC tokens held by addresses associated with Tornado Cash.
Related: Independent Tether attestation reveals 58% reduction in commercial paper holdings
Various commentators have recommended that quite a few users shifted funds from USDC to USDT, because of the correlation within the decline and development of the particular stablecoins’ market cap. Data from Glassnode implies that the percent of USDC held through the top 1% of addresses arrived at a 22-month low of 87.667%.
During-chain data implies that there’s been a sell-from USDC in the last week, metrics released by Glassnode on August. 22 demonstrated the seven-day moving average of USDC exchange deposits also arrived at its cheapest point since March 2021.
$USDC Quantity of Exchange Deposits (7d MA) just arrived at 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
As the market cap of USDC may be lower, the stablecoin arrived at a 3 year high when it comes to weekly mean transaction volume, surpassing the prior high registered in June 2022.
$USDC Mean Transaction Volume (7d MA) just arrived at a 3-year a lot of 228,721.050 USDC
Previous 3-year a lot 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
USDC have been touted to deal with USDT because the top stablecoin of 2022 by market capital in This summer 2022, edging to within $11 billion of Tether’s market cap. This percentage has eroded because the Tornado Cash debacle.
Tether remains mute on whether or not this would blacklist or freeze USDT tokens from the sanctioned mixer. Cointelegraph has arrived at to the stablecoin operator to determine whether or not this follows Circle’s lead in freezing assets associated with Tornado Cash addresses, because of the potential legal ramifications.
