Indeed, stablecoins suffered massively after the TerraUSD de-pegging crisis. The fiasco had UST plummeting from the steady $1 parity to $0.06 per UST while publishing this content. That had investors losing confidence as far as stablecoins are concerned. Meanwhile, USDC provider Circle took measures to restore the lost trust. Keep in mind that USDC is the 2nd-largest stablecoin after USDT.
Circle published the ‘How to Be Stable’ blog on May 13. The post highlighted Circles plans as far as USDC transparency and trust are concerned.
Have Some Confidence
Crypto exchanges displayed some confidence in the second-largest stablecoin in the marketplace. The exchange platform OKX revealed a listing of SOL/USDC, LUNA/USDC, SHIB/USDC, ADA/USDC, AVAX/USDC, APE/USDC, NEAR/USDC, DOT/USDC, and FIL/USDC. And DOGE/USDC. That meant continued efforts in supporting USDC ecosystem development.
Circle CEO Jeremy Allaire acknowledged his move in his May 23 tweet, stating top exchanges’ spot markets express safety and quality. He added that more would come soon.
Such comments might be crucial in offering some certainty amid a chaotic marketplace. Indeed, it appeared to work, with the trading volume gaining over 24% within the previous week. Besides maintaining transparency, Allaire promised weekly liquidity operations and USDC reserves reports.
He further revealed the USD Coin assurance report, adding that the previous week witnessed 8.6B USDC issued, plus 6.3B USDC redeemed, whereas net weekly circulation increased by 2.3B USDC. The CEO said that USDC remains an attractive product as it is easy to build and redeem with smooth integration with the worldwide banking system. Customers use the coin as an efficient bridge between digital currency dollars and legacy electronic dollars.
The news had the 2018 ICO scam wallet activation as developers attempted to cash out $22M in USD Coin. Zachxbt commented that the Sparkster wallets were activated over the weekend since the 2018 scam, swapping 12,200Ether for $22.7 Million USDCoin in five wallets.
Any Impacts?
Here are some bullish signals. The Exchange Net Flow attained -$20,349,225 ATH. Thus suggesting investor sentiment shift to bullish. The past -$17,229,420.56 ATH emerged on April 27, 2022. Steady outflows would mean massive holding sentiment and remove the market’s circulating supply. Furthermore, addresses with non-zero balances saw an increase.
