Want To Hodl USDC? Check These Indicators First To Ease Doubt

USD Coin (USDC), a stablecoin developed by Circle, has suffered a great deal from frequent price volatility in the cryptocurrency market.

USDC signals drop recently due to massive sell-offs
USD Coin exhibits extreme volatility
USDC’s weekly mean transaction volume peaks at three-year high

In actuality, USDC whale addresses likewise appeared to be sending out signals that were identical.

For instance, the signals for USD Coin have been dropping recently. Simply put, subsequent sell-offs and market events have decreased stablecoin’s market capitalization.

According to CoinMarketCap, USD is now trading at $1.00 or up by 0.01% as of this writing.

Limit Losses With This Stablecoin

With the help of stablecoins like Circle [USDC], Tether [USDT], and Binance USD [BUSD], investors can limit their losses.

These dollar-pegged cryptocurrencies give certain investors the opportunity to stake heavily once the market declines.

As a result, it would have been anticipated given the condition of the cryptocurrency market that several investors would have stable funding in stables.

These predictions may not be accurate, though.

In a report published on August 22 by CryptoQuant analyst BinhDang, it is stated that the top three stablecoins’ spot exchange reserves are in inferior condition, with USDC leading the perilous situation.

BinhDang observed that the USDC was at the forefront of the reserves holding decline. The USDC spot exchange reserves dropped significantly in June, falling from $1.9 billion to $1.3 billion, although the present level is exceedingly low.

There are possible circumstances that could have induced these declines, according to the CryptoQuant analyst.

The first is that over the past 24 hours, the exchange’s inflow and outflow’s seven-day mean Moving Average (Mean, MA7) have dramatically fallen.
Additionally, the sanctions placed by the US Treasury Department against cryptocurrency exchange Tornado Cash had a substantial effect on the market capitalization both for USDC and Tether (USDT).
Meanwhile, the value of USDC’s market tumbled after its creator Circle decided to freeze more than 75,000 USDC tokens held by accounts linked to Tornado Cash.
Another is that institutional investors and crypto whales may have “surpassed their limitations” on Bitcoin [BTC] at several price troughs.

Along with USDC, USDT, and BUSD have also reached record lows with no notable uptick in more than eight months.