Glassnode data insight丨USDC is growing rapidly and is expected to become the most valuable stable currency

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The supply of USDC is close to 3 billion, second only to USDT, but USDC has a more stable reputation than USDT.

Original title: “Glassnode 丨 USDC is expected to become the most valuable stablecoin? 》
Written by: Liesl Eichholz
Translation: Li Hanbo

BTC continued its upward momentum in the 44th week and closed this week with a gain of more than 5%. But despite these gains, the decline in fundamentals on the chain may prevent Bitcoin from decoupling from traditional markets.

Bitcoin market health

Bitcoin has another impressive performance this week, starting at $13,020 and closing at $13,690. Throughout the 44th week, it fell below $13,000 several times, but continued to recover from these declines, and eventually rose by 5.2% overall and regained more of the total crypto market share.

Glassnode 数据洞察丨 USDC 增长迅猛,有望成为最有价值稳定币

In week 44, despite the increase in BTC price, the fundamentals on the Bitcoin chain declined. GNI dropped 9 points, bringing it to 57 points. All sub-indices have declined, but the decline mainly comes from network health and liquidity, while market sentiment has remained relatively stable .

Glassnode 数据洞察丨 USDC 增长迅猛,有望成为最有价值稳定币

Internet health dropped by 12 points in the past week, and the final score was 59 points. Part of the decline was due to the network growth sub-category. But part of the greater loss is the decline in network activity, which is due to the decline in the transaction rate and the number of active addresses on the chain, which ultimately led to a 17-point decrease in network activity .

Liquidity dropped by 10 points throughout the 44th week, and finally ended with 49 points. While transaction liquidity increased, due to the decline in the number and speed of transactions on the chain and the increase in transaction fees on the chain, the final transaction liquidity sub-category dropped by 14 points.

The sentiment sub-indices performed best among the three sub-indices, dropping only 1 point and closing the week with 68 points. While investor sentiment rose, the savings behavior sub-category index fell sharply by 65 points. This is mainly caused by the Hodler Net Position Change indicator falling into a negative value, which means that the number of Holders sold this week exceeded the number of purchases.

Glassnode 数据洞察丨 USDC 增长迅猛,有望成为最有价值稳定币

Glassnode guide

Despite the decline in gross national income in the past week, Bitcoin remained in a “bull market state” in week 44, which has lasted 23 weeks so far.

Glassnode 数据洞察丨 USDC 增长迅猛,有望成为最有价值稳定币

Although Bitcoin’s on-chain fundamentals fell in week 44, its price still performed well . Last week, we discussed the possible decoupling of Bitcoin from traditional markets, and the price movements of the past week support this view that this may be an emerging trend.

While the stock price continues to fall, the price of Bitcoin has been rising. If Bitcoin can maintain this trajectory, it may usher in a bull market, and a new historical high may be in sight. However, the recent decline in fundamentals on the chain may hinder the outbreak of Bitcoin at this stage .

Altcoin overview

Relative to Bitcoin’s performance

Throughout the 44th week, good altcoins did not perform well. For the second consecutive week, in terms of Bitcoin’s value, the biggest loss is still BNB, whose decline is only -10.6% after Bitcoin.

Glassnode 数据洞察丨 USDC 增长迅猛,有望成为最有价值稳定币

At the same time, ETH has seen some gains in the previous week, but in the past week, ETH has fallen by 7.4% compared to Bitcoin.

Compared to USD performance

In addition to the depreciation relative to Bitcoin, the dollar value of good altcoins has fallen in the past week. Among the top crypto assets, Bitcoin is the only currency that performed well at the end of the week.

Glassnode 数据洞察丨 USDC 增长迅猛,有望成为最有价值稳定币

After dropping 1.7% in the previous week, BNB has dropped another 6% in the past week. BCH is the least impacted altcoin, losing only 1.1% of its value and maintaining its fifth position.

The supply of USDC is close to 3 billion

USDC is an ERC-20 stablecoin supported by a 1:1 reserve of fiat currency that is regularly reviewed. The asset was launched by Circle in September 2018 and is supported by companies such as Coinbase and Bitmain .

USDC grew slowly in the first year and a half of its establishment. It took 21 months to reach a supply of 1 billion, and it reached this goal in July 2020. However, after this milestone, the asset entered a fast-growing track, doubling the supply to 2 billion in just 2.5 months .

Less than 2 months later, it is now the second most popular stablecoin with a supply of nearly 3 billion, making it the 12th largest crypto asset by market value.

Glassnode 数据洞察丨 USDC 增长迅猛,有望成为最有价值稳定币

Its popularity is second only to USDT (Tether). USDT’s supply is 16.7 billion, but its reputation is not stable. Although USDT also achieved impressive growth in the second half of 2020, it is also said that it does not have a 1:1 support, which opened the market for stable currencies such as USDC and gained more popularity.

With such growth, USDC will soon enter the top ten and become one of the most valuable crypto assets . Considering the rising usage of stablecoins and the increased popularity and reputation of stablecoins compared to USDT, it may even continue to rise and become the most valuable stablecoin.

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