Tether (USDT) must feel USD Coin (USDC) breathing down its neck in terms of market cap ranking as investors re-evaluate their stablecoin choices in the aftermath of TerraUSD (UST). To that aim, two metric-based milestones tell us a lot about USD Coin demand – and its potential future.
According to Glassnode, USD Coin liquidity on Uniswap has dropped to levels last seen roughly 16 months ago. What is the significance of this? Falling liquidity on Uniswap, on the other hand, is a sign of high demand and may signal that people are moving toward stablecoin.
On the other hand, it is important to consider all the evidence. Santiment data shows that the supply of USD Coin on exchanges has decreased since the beginning of April and is sitting at 5.2 billion USDC at the time of writing.
By comparison, the supply of UST holdings on exchanges has decreased since UST lost its peg. But while you might assume the numbers are now close to all-time highs, the truth is that UST supply only increased to levels last recorded at the end of April.
In fact, is more and more USD Coin breaking out of the whales and flowing to more investors on a daily basis? Glassnode data shows that the top 1% of addresses only hold about 91.226% of the USDC supply. While this number may still seem like a lot, it is, in fact, a 13-month low.
On the 16th of May, Glassnode published a report noting USDC’s growing position in the crypto ecosystem, writing:
“USDC reversed the trend of supply contraction that has been in place since late Feb, expanding by $2.639B. Given the dominant growth of USDC over the last two years, this may be an indicator of changing market preference away from USDT and towards USDC as the preferred stablecoin.”
Report but only out that:
“The recent stablecoin supply contraction of $2.9B was the largest in history, mostly driven by USDC. As such, an outflow of this scale has now put this week into the pole position by this metric.”
Can the above data prove the growth of USD Coin, and can it surpass Tether when this stablecoin is $20 billion higher than it?
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.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
Author
Knowledge
Why may USDC not be ready to overtake USDT?
Tether (USDT) must feel USD Coin (USDC) breathing down its neck in terms of market cap ranking as investors re-evaluate their stablecoin choices in the aftermath of TerraUSD (UST). To that aim, two metric-based milestones tell us a lot about USD Coin demand – and its potential future.
According to Glassnode, USD Coin liquidity on Uniswap has dropped to levels last seen roughly 16 months ago. What is the significance of this? Falling liquidity on Uniswap, on the other hand, is a sign of high demand and may signal that people are moving toward stablecoin.
On the other hand, it is important to consider all the evidence. Santiment data shows that the supply of USD Coin on exchanges has decreased since the beginning of April and is sitting at 5.2 billion USDC at the time of writing.
By comparison, the supply of UST holdings on exchanges has decreased since UST lost its peg. But while you might assume the numbers are now close to all-time highs, the truth is that UST supply only increased to levels last recorded at the end of April.
In fact, is more and more USD Coin breaking out of the whales and flowing to more investors on a daily basis? Glassnode data shows that the top 1% of addresses only hold about 91.226% of the USDC supply. While this number may still seem like a lot, it is, in fact, a 13-month low.
On the 16th of May, Glassnode published a report noting USDC’s growing position in the crypto ecosystem, writing:
“USDC reversed the trend of supply contraction that has been in place since late Feb, expanding by $2.639B. Given the dominant growth of USDC over the last two years, this may be an indicator of changing market preference away from USDT and towards USDC as the preferred stablecoin.”
Report but only out that:
“The recent stablecoin supply contraction of $2.9B was the largest in history, mostly driven by USDC. As such, an outflow of this scale has now put this week into the pole position by this metric.”
Can the above data prove the growth of USD Coin, and can it surpass Tether when this stablecoin is $20 billion higher than it?
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.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
Other Posts
Related Posts
Latest
BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability
Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction
Book of Meme Old News? This Best Meme Coin to Invest in 2024 Is Multiplying Gains Like a Champ
Press Release
BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability
Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction
