According to the latest data compiled by crypto analytic platform, IntoTheBlock, the USDC stablecoin recorded its second highest volume.
ITB Told The total volume of on-chain transactions on USDC reached $38.72 billion, with Bitcoin and Ethereum falling below $21k and $1,100.
Interestingly, this is not the first time that USDC has moved smoothly during a market downtrend.
Circle’s leading stablecoin managed to close the gap between the top centralized stablecoin, Tether’s USDT, during UST de-pegging and last fall. This was the time when extreme fear gripped the market, and investors left USDT for USDC, which became the stablecoin of choice on the Ethereum blockchain.
In fact, USDC is gaining market share as the once-$18 billion UST stablecoin went on a death spiral, and the USDT price faltered.
Currently, it is the second largest stablecoin with a market cap of $54.23 billion, just after Tether, which has a market cap of $70.77 billion, according to CoinMarketCap. Much of the effort to drive USDC adoption through acquisitions and other initiatives can also be attributed to stablecoin issuer and fintech company Circle.
The recent market downturn was triggered by the crypto lender – Celsius’ decision to suspend all withdrawals and transactions to prevent a run on deposits. Amid worsening macro events globally and a liquidity crisis in crypto, another controversial dollar-based stablecoin faltered.
While centralized stablecoins are trading fine, it is the algorithm that is causing trouble once again. This time it is USDD, a stablecoin founded by Tron creator Justin Tron in May 2022, that has fallen off the dollar peg despite overcollateralized reserves.
It declined to a low of $0.974. According to Sun, the reason for the de-pegging was a large number of short sellers targeting TRX, the network’s native token, on Binance. In an effort to reestablish Peg, the executive said the Tron DAO Reserve will pledge up to $2 billion to fight short sellers.
TRON DAO Reserve, which manages the stablecoin, revealed That it will withdraw 2.5 billion TRX from Binance “to protect the overall blockchain industry and crypto market”.
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