USDC Liquidity Reaches Highest Point Since February 2023
USDC liquidity is at its highest level since February 2023, according to a new report from CryptoQuant. The report states that Circle typically mints so many coins during bearish periods.
USDC’s market value has also increased by more than $9 billion in the past month.
Circle’s USDC liquidity continues to grow
Cryptoquantization, a Respected Blockchain Analytics Companyissued a briefing Report Today on USDC liquidity. Apparently, Circle minted enough USDC stablecoin to reach its highest level in almost two years.
The report also claims that Long-term partnerships with cryptocurrency market makers May have contributed to this minting event:
“Presumably this is related to a strategic partnership with Cumberland, a well-known market maker in the ETF space. It is unclear whether this liquidity will be immediately mobilized or held as a reserve. Looking at past (BTC) price patterns, USDC liquidity has generally been are injected during periods of price consolidation or decline.”
USDC is a Popular stablecoins issued by Circlealthough its dominance is significantly lower than Tether’s USDT. Still, the report’s statement that USDC liquidity typically surges during bearish periods seems odd compared to Circle’s performance.
the company Have recently made significant political contributionsand its long-term plans Challenging Tether’s EU market dominance It’s paying off. In response to Circle’s EU play, Tether also started Mint large amounts of your own stablecoin.
However, this liquidity injection does not seem to fit well with USDC’s situation in some ways. Instead, the price of Bitcoin may be a better reference point because recent surge.
At this time, it is difficult to predict exactly how Circle plans to utilize USDC liquidity. The company’s plans to challenge Tether in Europe are progressing well, and it acquired Hashnote Labs yesterday. it’s also Work with Aptos Entering the US TradFi market.
However, the company also Conducted significant layoffs last month. Therefore, Circle’s current financial situation remains questionable. this Stablecoin Issuers may reallocate their assets across different channels to ensure sustainable financial growth in the new regulatory environment in the EU and US.
Currently, this minting event is one of the clearest windows into Circle’s overall health. Whatever it plans to do, USDC’s liquidity will provide it with a wider range of options going forward.
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