Glassnode reveals decreased USDC withdrawals.
Glassnode Alerts, in a tweet on Monday, reveals that less USDC has been taken off exchanges in recent weeks, noting that outflows have reached 3-month lows.
“USDC Exchange Outflow Volume (7d MA) just reached a 3-month low of 17,054,825.527 USDC. Previous 3-month low of 18,142,495.136 USDC was observed on 09 June 2022,” the analytics service tweeted.
? $USDC Exchange Outflow Volume (7d MA) just reached a 3-month low of 17,054,825.527 USDC
Previous 3-month low of 18,142,495.136 USDC was observed on 09 June 2022
View metric:https://t.co/hWFOcr37NM pic.twitter.com/i3gqGVljQn
— glassnode alerts (@glassnodealerts) July 11, 2022
It is worth noting that a decrease in stablecoin withdrawals on exchanges can serve as an indicator of increased buying intent as they serve as on-ramps for the crypto space. Moreover, in June, The Crypto Basic reported that there had been an increased supply of Tether USD (USDT) to exchanges fueling speculations of increased buying power.
Notably, Circle’s USDC has shown significant growth in the past year as trust in the coin increases. As a result, it has remarkably held its own despite recent stablecoin concerns. Additionally, its market cap has shown considerable growth as it edges closer to overtaking Tether as the leading stablecoin.
“Circle is in the strongest position it has ever been in financially, and we will continue to increase our transparency,” Circle CEO Jeremy Allaire tweeted, addressing recent stablecoin concerns.
8/ Circle is in the strongest position it has ever been in financially, and we will continue to increase our transparency. FWIW, we are also encouraged by emerging regulatory frameworks for stablecoin issuers, which should help further increase confidence in issuers like Circle.
— Jeremy Allaire (@jerallaire) July 2, 2022
Following the collapse of the Terra ecosystem as a result of the Terra USD (UST) de-pegging event, there has been increased scrutiny of stablecoins as investors worry about their backing. Notably, Tether has been on the receiving end of a lot of this concern as hedge funds short the asset en masse, triggering a surge of redemptions and causing a $16 billion drop in market cap.
Circle currently boasts a market cap of $55.55 billion, less than $11 billion away from market leaders Tether. Consequently, it remains the fourth largest crypto by market cap. Notably, USDC issuer Circle is currently pursuing a US crypto bank charter.
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Source: https://thecryptobasic.com/2022/07/12/usdc-weekly-exchange-outflow-volume-taps-3-month-low-glassnode/?utm_source=rss&utm_medium=rss&utm_campaign=usdc-weekly-exchange-outflow-volume-taps-3-month-low-glassnode