USDC Whale Holdings Percentage At Its Lowest Level In Nearly Two Years

As the bear market in cryptocurrencies persists, the proportion of USD Circle (USDC) stablecoins held by significant wallet addresses fell to its lowest level in almost two years.

The newest data on USD Circle measures, which reflect a recent sell-off of the second-largest U.S. dollar-backed stablecoin by market capitalization, has been made public by cryptocurrency analytics company Glassnode.

The U.S. Treasury Department’s sanctions against cryptocurrency mixer Tornado Cash had a significant impact on the capitalization of both USD Circle and its main rival, Tether (USDT).

The market capitalization of USD Circle decreased after its issuer Circle chose to freeze over 75,000 USD Circle tokens held by addresses connected to Tornado Cash, whilst USDT markets saw growth of almost $2 billion in the days following the penalties.

Given the similarity between the rise and fall of each stablecoin’s market cap, several commenters have argued that some users may have switched their cash from USDC to USDT.

The top 1% of addresses now own a 22-month low of 87.667% of all USDC

On-chain data indicates that USDC has been declining over the past two weeks, but measures made public by Glassnode on August 22 also indicated that the seven-day moving average of USDC exchange deposits had fallen to its lowest level since March 2021.

While the market cap of USDC might be down, the stablecoin reached a three year high in terms of weekly mean transaction volume, surpassing the previous high registered in June 2022.

In July 2022, USDC was predicted to come within $11 billion of Tether’s market cap and challenge USDT as the leading stablecoin of 2022 based on market capitalization. Since the Tornado Cash fiasco, this percentage has decreased.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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