The Second Largest Stablecoin Is Losing Power!

According to renowned analyst Geralt Davidson, of the circle stablecoin USDC rapidly losing power.

Moreover, the stablecoin’s market value is undergoing a significant drop with no signs of recovery.

FED‘s hawk stance, all cryptocurrency resulted in a general decline in the market. This decline was also reflected in stablecoins.

The Second Largest Stablecoin By Market Cap, USDC Continues to Fall

USD Coinsis the second largest stablecoin by market cap, issued by Circle. With the last drop, its market capitalization fell below $50 billion.

Geralt Davidson emphasizes that the supply of USDC, held by the top 1%, has been steadily declining. He states that the whales are dumping their USD Coins.

according to Davidson Tornado Cash His decision marked a bad turning point for the company.

The US Treasury Office of Foreign Assets Control has sanctioned Tornado Cash for money laundering activities. USDC’s parent company, Circle, has frozen all of its tokens in Tornado Cash.

Unlike Circle, Tether companies such as Tornado Cash did not freeze USDT on their addresses. According to Davidson, Circle’s decision led to a lack of trust in the organization.

The volume of USDC on exchanges was very close to that of USDT recently. Some experts believed that USDC would dethrone USDT as the top stablecoin by October 10, 2022.

However, at the moment, it is not at a level to compete with the second largest stablecoin USDT. USDT’s market cap is currently close to $68 billion, while USDC’s is at $49.7 billion.

Lack of confidence in USDC could be a major issue as the Fed continues to favor hawkish measures.

However, USDC’s compliance with Tornado Cash in the past period has led critics to claim that USDC will support central bank digital currencies.

*Not investment advice.