Tether [USDT] should certainly really feel USD Coin [USDC] respiratory down its neck when it comes to market cap rating as buyers have a look at the wreckage of TerraUSD [UST] and re-assess their stablecoin preferences. To that finish, two metric-based milestones go a good distance in telling us concerning the demand for USDC – and its potential future.
The horse has left the secure
Glassnode reported that USDC liquidity on Uniswap has been hitting lows final seen round 16 months in the past. Why is that this important? Effectively, falling liquidity on Uniswap is an indication of excessive demand and will point out that customers are gravitating in the direction of stablecoin.
? $USDC Liquidity on Uniswap simply reached a 16-month low of $199,797,454.26
Earlier 16-month low of $201,664,641.14 was noticed on 12 Might 2022
View metric:https://t.co/dYndhpGfMH pic.twitter.com/oE8ZRQiEhT
— glassnode alerts (@glassnodealerts) May 20, 2022
Then again, it’s vital to have a look at all of the proof. Santiment knowledge confirmed that USDC provide on exchanges has been rising since about 17 Might, even after USDC’s value got here again to regular ranges as soon as extra.
Supply: Santiment
To match, UST provide held on exchanges has plunged since UST’s de-pegging. However when you would possibly assume that the numbers at the moment are near all-time highs, the reality is that UST provide has solely risen to ranges final recorded in the direction of the top of April.
Supply: Santiment
Awake or not, right here I come!
At press time, USDC velocity was falling, suggesting that fewer USDC stablecoins had been shifting between addresses. Nevertheless, this doesn’t imply that nothing is altering for buyers.
Supply: Santiment
The truth is, is extra USDC leaking out of the whales’ grip and flowing to extra on a regular basis buyers? Glassnode knowledge confirmed that the highest 1% of addresses had been solely holding about 91.226% of the USDC provide. Whereas this will likely nonetheless appear to be lots, it’s in actuality a 13-month low.
? $USDC % Provide Held by High 1% Addresses simply reached a 13-month low of 91.226%
Earlier 13-month low of 91.239% was noticed on 12 Might 2022
View metric:https://t.co/EU57HUtLdu pic.twitter.com/L3t1zVBDSO
— glassnode alerts (@glassnodealerts) May 20, 2022
A report by Glassnode on 16 Might also took notice of USDC’s rising position within the crypto ecosystem, stating,
“USDC reversed the development of provide contraction that has been in place since late Feb, increasing by $2.639B.”
It added,
“Given the dominant progress of USDC during the last two years, this can be an indicator of fixing market choice away from USDT and in the direction of USDC as the popular stablecoin.”
