According to the most recent data compiled by crypto platform, IntoTheBlock USDC stablecoin had its second-highest volume ever.
USDC Wins the Tussle
According to ITB, with Bitcoin and Ethereum falling below $21k, $1,100 respectively, the USDC total volume of transactions on-chain reached $38.72 Billion.
This is not the first time USDC has been able to navigate through a market downturn smoothly.
Despite the UST de-pegging, and eventual collapse, Circle’s flagship stablecoin was able to close the gap with USDT, the top centralized stablecoin. Extreme fear gripped the market at this time, so investors switched USDT to USDC. This stablecoin went on to be the most popular on the Ethereum blockchain.
Since the USDT’s collapse and death spiral of the once-$18billion UST stablecoin, USDC has gained market share.
According to CoinMarketCap, currently, it is second in stablecoin market capital with $54.23 billion. This is just after Tether which has a market value $70.77 billion. The stablecoin issuer Circle and the fintech company Circle are responsible for much of this effort. They have been pushing USDC adoption through acquisitions, and other initiatives.
History repeats itself?
In an effort to stop a run on deposits, Celsius, a crypto lender, decided to suspend withdrawals and transactions. This triggered the recent market slump. Another controversial stablecoin based on the dollar wobbled amid worsening macroeconomic events and a liquidity crisis in crypto.
Although centralized stablecoins have been trading well, it is the algorithmic ones which are causing trouble again. It is USDD, the stablecoin created by Tron creator Justin Tron, which has slipped from the dollar peg despite having a large overcollateralized reserve.
It fell to $0.974. Sun stated that the reason for de-pegging was the large number of short sellers on Binance targeting TRX, which is the network’s native token. Tron DAO Reserve pledged $2 billion to help fight short sellers in an attempt to restore the peg.
TRON DAO Reserve, the company that manages the stablecoin revealed it would withdraw 2.5 billion TRX from Binance in order to “safeguard both the overall blockchain industry” and the crypto market.
Marla Brooks – Financial Analysis
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