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

Circle’s USD Coin (USDC) has been a volatile stablecoin that has seen its price fluctuate a lot in recent years.

  • Due to large sell-offs, USDC signals dropped recently
  • 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.

Recently, signals for USD Coin are dropping. Simply put, subsequent sell-offs and market events have decreased stablecoin’s market capitalization.

According to CoinMarketCapUSD trades at $1.00, up 0.01% since this writing.

Use this stablecoin to limit your losses

Stablecoins such as Circle can be used to help you. [USDC]Tether [USDT]Binance USD and? [BUSD]Investors have the ability to limit their losses.

This cryptocurrencies, which are dollar-pegged, offer investors an opportunity to hold large stakes in the event of a market crash.

Given the current state of cryptocurrency markets, one would expect that many investors would be able to access stable funds.

However, these predictions might not prove to be correct.

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 noted that USDC was the most prominent indicator of declining reserves. Although the current level of USDC spot currency reserves is extremely low, it fell from $1.9billion to $1.3billion in June.

The CryptoQuant analyst believes that there could be other factors to explain these declines.

  • 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.
  • Also, US Treasury Department sanctions against Tornado Cash cryptocurrency exchange had an important effect on market capitalization for USDC as well 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 levels.

USDC, USDT and BUSD also fell to record levels with no significant upticks in over eight months.

USDC Trade Value Drops

A review of USDC holdings revealed that USDC reserves had been declining for approximately a week. The USDC reserves had an estimated value of $4.45 trillion on August 17th. Today it is worth $3.26billion, which represents a decrease in value by 4 percent from the day before.

The USDC average exchange outflow and inflow showed that CryptoQaunt experienced a 74% and 70% decline respectively.

With the steady decline, BinhDang’s assertion that institutional and ordinary investors are unconcerned about HODLing stablecoins may be true.

Despite having a lower market valuation, one aspect of USDC’s performance improved immensely. As it neared a three year high, its weekly average transaction volume also increased. USDC seems to have received more support recently than USDT.

This attention hasn’t resulted in more stablecoin holders, though. It is expected that the stablecoin will continue to be the fourth largest cryptocurrency in terms of market value.

 Source: TradingView.com| Source: TradingView.com

Featured image by Freepik. Chart from TradingView.com

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