USDC Whale Holdings Percentage Is At A Two-Year Low

USDC Whale Holdings Percentage Is At A Two-Year Low

USDC whale holdings percentage is at a two-year low, and it is the result of heavy influence from the frequent price swings in the cryptocurrency market.

The current performance of its whales’ addresses indicates a southern shift. USD Coin’s principal wallet addresses have dropped to an almost two-year low.

According to Glassnode, a crypto analytics company, USD Coin indicators are deteriorating. For example, the stablecoin’s market cap has recently been reduced due to recent sell-offs and decreases.

According to a study on Tornado Cash, the second-largest stablecoin by market size, the US Treasury Department’s penalty on Tornado Cash is a contributing reason to USDC’s performance. The punishment not only created a loophole for the reduction in USDC valuation, but it also had an influence on Tether, its main rival.

Following the approval of Tornado Cash, Circle, the parent company and developer of USD Coin, froze around 75,000 USDC coins. The coins were held by various Tornado Cash-related addresses.

The USDC market cap was reduced as a result of this action. Tether, on the other hand, had the opposite performance. As a result, USDT markets saw a $2 million gain a few days following the US Treasury punishment.

Many industry observers are analyzing the rise and fall of market capitalizations for USDT and USDC. The majority believe that investors switched from USDC to USDT. Data from on-chain analytics companies, on the other hand, revealed a significant sell-off during the last two weeks.

Glassnode data also verified that the USDC’s seven-day moving average of exchange deposits fell to a 17-month low of 138250. This was in comparison to a comparable reading of 138.810 reported in March 2021.

There is also evidence that USDC owns 87.667% of the top 1% of addresses. This represents a 22-month low for a stablecoin. There can be no doubt that USDC whale holding percentage is at a two-year low.

All Is Not Lost

Despite its lower market valuation, USDC showed an improvement in one element of its performance. It increased its weekly mean transaction volume to a three-year high. The total value was 228,721.050 USDC coins. This latter development beats the previous one, which was 226,056.588 USDC in June of this year.

USDC has received a lot of attention for its potential to overtake USDT as the largest stablecoin by market cap in July 2022. USDC has closed in on Tether’s market worth of $11 billion. However, it has given up its prior gains following the Tornado Cash event.

Tether has yet to comment on whether it would freeze USDT coins linked to Tornado Cash. However, organizations who support assets related to the sanctioned crypto mixer site may face legal consequences.

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