Crypto Hotshots 2022 🔥♨️

Twitter Instagram Facebook Facebook Linkedin Youtube Spotify Medium Reddit Tik-tok Telegram
Voice of Crypto
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
    • Sponsored
    • Global Crypto Events
  • Services
    • Content Marketing Services
    • Crypto Influencer Marketing
    • Advertise With Us
  • Know Us
    • About Us
    • VOC Team
    • VOC Vigilantes
    • Brands Who Trust Us
    • Contact Us
Reading: Why Did USDC Lose 20% Of Its Market Capitalization in a Month?
Share
  • bitcoinBitcoin(BTC)$28,260.00
  • ethereumEthereum(ETH)$1,788.39
  • tetherTether(USDT)$1.00
  • binancecoinBNB(BNB)$338.72
  • usd-coinUSD Coin(USDC)$1.00
  • rippleXRP(XRP)$0.384365
  • cardanoCardano(ADA)$0.344910
  • matic-networkPolygon(MATIC)$1.16
  • staked-etherLido Staked Ether(STETH)$1,786.59
  • dogecoinDogecoin(DOGE)$0.074546
  • Events
  • Videos
  • Podcast
Voice of CryptoVoice of Crypto
Aa
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
  • Services
  • Know Us
Search
  • VOC Explained
  • News
  • Analysis
  • Bitcoin
  • Altcoin
  • Press Release
    • Sponsored
    • Global Crypto Events
  • Services
    • Content Marketing Services
    • Crypto Influencer Marketing
    • Advertise With Us
  • Know Us
    • About Us
    • VOC Team
    • VOC Vigilantes
    • Brands Who Trust Us
    • Contact Us
Follow US
Copyright © 2023 Voice of Crypto. All Rights Reserved
Voice of Crypto > News > Why Did USDC Lose 20% Of Its Market Capitalization in a Month?
News

Why Did USDC Lose 20% Of Its Market Capitalization in a Month?

Valentine Adegboyegun
Last updated: 2023/03/14 at 1:23 PM
Valentine Adegboyegun Published October 27, 2022 March 14, 2023
Share
VOC, Voice of Crypto, USDC

No doubt, the crypto winter has affected all crypto assets. One of the badly hit is the Circle’s USDC stablecoin.

Contents
How USDC Coin Lost 20% Of Its Market Cap Conclusion 

In the last 30 days, the USDC coin has lost about 20% of its market capitalization. The market capitalization fell from $53.3 billion to $43.9 billion. 

On the 26th of September, over $5 billion worth of USDC was significantly withdrawn.  Recall that this stablecoin reached a market cap of $55.8 billion in July.  

It has since then lost a chunk of its market cap. 

How USDC Coin Lost 20% Of Its Market Cap 

Since July, shortly after reaching its peak, USDC has started losing its presence in the market. However, the main cause of loss is the freezing of coins linked to Tornado cash addresses. 

About 75,000 USDC linked to 44 Tornado cash addresses were frozen, leading to controversies. This tweet by “Banteg” shows that an additional 149 coins donated to the Tornado project were also frozen. 

Circle attributed the freezing to the US Treasury department sanction of Tornado Cash.  The stablecoin lost the community and stakeholders’ sympathy due to this funds freezing. 

Considering it violated the fund owners’ rights, the protocol was met with backlash and massive withdrawal.  Some blockchain protocols, such as MakerDAO, also expressed their displeasure. 

It is important to know that USDC backs a large part of the MakerDAO reserve. MakerDAO went further by hinting at the need to discontinue its dependence on the stablecoin.

Another factor responsible for this loss is the market dominance battle.  Binance champions this battle to ensure its stablecoin dethrones USDC and becomes the second most valuable. 

Reports show that Binance is succeeding in this pursuit. Bitcoin’s BUSD has grown by 22% in the last few months from about $17.64 billion to $21.62.

BUSD currently sits behind USDT, while USDC incurred the loss. Similarly, two notable exchange platforms delisted the stablecoin in September. 

Binance and WazirX delisted several stablecoins that included USDC, USDP, and TUSD. This move by WazirX is expected to push for the wide adoption of Binance (BUSD). 

Jeremy Allaire of Circle, however, said Binance’s actions would not affect USDC. Barely weeks after the delisting, Circle’s stablecoin has been hit but still maintains its top 5 positions. 

Conclusion 

Several factors have contributed to losing about 20% of the USDC market cap. The single-day withdrawal of about $5 billion contributed to a 9.2% loss in the total market cap. 

The delisting by Binance and WazirX accounts for a 6% loss. Experts opine that Circle must regain investors’ and payment platforms’ trust to bounce back.   

Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

 

 

You Might Also Like

HeartX Launches Web3 Marketplace and Community Aim to Revolutionize Digital Art Industry

SVB Collapse Stalls NFT Market Growth

Bitcoin Price Shows Phenomenal Recovery: Is This Just the Beginning?

US Government Moves 40,000 BTC

Why Bitcoin Price is Primed For Wild Swings

TAGGED: Bitcoin, Blockchain, Crypto Exchange
Share this Article
Facebook Twitter Email Copy Link Print
Previous Article bitcoin Ripple (XRP) Price Rallies as Crypto Market Cap Hits $1 Trillion, What’s Next?
Next Article 0_bitcoin-2348236_1920 Salvadorans Reject Bitcoin Despite Bukele’s Bullishness on BTC
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Binance

Follow US

Find US on Socials
Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Subscribe to our Newsletter

Get Newest Articles Instantly!

Ledger
Popular News
Web3 Shorthand
Web3 Shorthand: A Glossary for Crypto Newbies
Technically Looking at Web3
Technically Looking at Web3, Blockchain and Crypto with Tara
Quick-Tips-To-Avoiding-A-Fake-Crypto-Wallet
Quick Tips To Avoiding A Fake Crypto Wallet

Follow Us on Socials

We use social media to react to breaking news, update supporters and share information

Twitter Instagram Facebook Facebook Linkedin Youtube Spotify Medium Reddit Tik-tok Telegram
Voice of Crypto

Voice Of Crypto hits a beat with almost 15 million users, churning out the best news and content in the Web3, crypto and blockchain space

Subscribe to our newsletter

You can be the first to find out the latest news and tips about trading, markets...

  • Advertise With Us
  • About Us
  • Privacy Policy

Copyright © 2023 Voice of Crypto. All Rights Reserved

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?