Second Largest Stablecoin USDC Declines

According to crypto analyst Geralt Davidson's crypto assessment, Circle's stablecoin USDC is quickly losing steam. The stablecoin is recording a significant decline in market capitalization with no signs of recovery.

The hawkish stance of the US Federal Reserve has caused a general decline in the entire cryptocurrency market. This decline was also reflected in stablecoins. USD Coin is the second largest stablecoin by market capitalization, issued by Circle. With the recent decline, its market capitalization has reached below $50 billion. Geralt Davidson underlines that the supply of USDC held by the top 1% has been steadily declining, while whales are dumping their USD coins. The US Treasury's Office of Foreign Assets Control sanctioned Tornado Cash for money laundering activities. USDC's parent company, Circle, decided to freeze all its tokens in Tornado Cash. Unlike Circle, companies like Tether did not freeze USDT on Tornado Cash. According to Davidson, Circle's decision caused a lack of trust in the organization. The volume of USDC on exchanges was very close to the volume of USDT recently. Some expert analysts predicted that USDC would dethrone USDT as the top stablecoin by October 10, 2022. With USDT's market capitalization continuing to favor hawkish measures from the FED, the lack of confidence in USDC could be a major issue. However, USDC's recent alignment with Tornado Cash has led critics to claim that USDC will support central bank digital currencies. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!   The investment information, comments and recommendations in this article do not constitute investment advice. Investment advisory services are provided individually, taking into account the risk and return preferences of individuals. The content contained herein is in no way directive and the recommendations are general in nature. These recommendations may not be suitable for your financial situation and risk and return preferences. Therefore, making an investment decision based solely on the information contained herein may not produce results in accordance with your expectations.