Crypto Whales Ditch USDC…Here’s Why!
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Answer Crypto Whales Ditch USDC…Here’s Why!
According to analyst and cryptocurrency trader Geralt Davidson, the second largest stablecoin USDC is facing a major problem.
The Fed’s tough stance led to a sell-off in the entire cryptocurrency market.
Therefore, according to Geralt Davidson, the Circle stablecoin is rapidly losing steam.
In addition, there is a significant drop in the market value of the stablecoins with no sign of recovery.
USD Coin is a stablecoin issued by Circle, the second largest stablecoin by market capitalization.
Its market capitalization has now fallen to less than 50 billion dollars.
Why might the USDC digital stablecoin be in trouble?
sheds Analyst Geralt Davidson highlights how the USDC supply, held by the top 1% of headlines, is steadily declining.
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This analyst highlighted that crypto whales are dumping USDC.
According to “Davidson,” the decision for Tornado Cash was a bad moment for the company.
The US Treasury Department’s Office of Foreign Assets Control imposed sanctions on Tornado Cash for money laundering activities.
Circle, the parent company of USDC, has frozen all of its cryptocurrency on Tornado Cash.
Unlike Circle, companies like Tether have not frozen USDT on Tornado Cash addresses.
According to Davidson, Circle’s decision has shaken confidence in the company.
The volume of USDC in the trading platforms was very close to the volume of USDT in February 2022.
Some experts have even predicted that USDC is set to get rid of USDT as the best stablecoin by October 10, 2022.
Currently, the second largest stablecoin is not close enough to snatch its place, with a difference of $18 billion between them.
Recently, the USDC coin took a huge hit as Binance removed USDC from its platform and suspended its deposit.
Read:Will Bitcoin continue to slide especially after the stock market closes sharply lower?
Instead, the platform offered to convert its users’ currencies from USDC to BUSD at a 1:1 ratio.
Indian crypto exchange WazirX has followed in Binance’s footsteps and removed USDC.
Circle’s stance on Tornado Cash has made the crypto community averse to the USDC, which scrambled for regulatory compliance without a second thought on the platform’s users, who resented its stance.
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