Popular stablecoin service USDC is starting to lose strength in its market cap distribution on the Ethereum (ETH) network.
With the effect of the long-term shame market in the crypto money sector, the decreases in market values continue. In particular, the crisis of stablecoin issuer Terra and the disruption of the UST service stood out as the most important factors. Stablecoin issuers who want to survive in market conditions go to fund supports and service improvements.
USDC Succeeds in Surviving
According to the Messari report, the stablecoin service continues its declines in the market. In addition, Binance-backed BUSD showed growth. With new services and increased competition in the stablecoin market, USDC may be in a difficult position.
The dark clouds on the USDC side came to the fore with the disruption of its dominance in the ETH network. The popular service has seen a nearly 5 percent drop in its dominance on the ETH network since July. Additionally, BUSD witnessed a nearly 5 percent rise in adoption on the ETH network.
Actively using the ETH network, USDC had 44 percent of the dominance last summer. However, Messari stated that this rate is now around 39 percent. However, USDC is seen as one of the leading stablecoin services in terms of performance, despite declines in dominance and community adoption.
Optimism (OP) and Arbitrum, which emerged as scaling and improvement protocols in the ETH network, also opened their doors to the popular stablecoin service. On these platforms, the stablecoin service gained a 58 percent dominance over OP and 75 percent dominance over Arbitrum. However, these data point to a high rate due to the low demand for stablecoins on the platforms.
USDC Data, What’s Happening in Popular Stablecoin?
On the USDC side, there has been a decrease in wallet holders and the amount of new addresses. The data points to a decrease in users’ interest in this service.
However, some data are starting to look positive. Despite volatile dominance and waning interest, USDC holds 54 percent of the volume in stablecoin transfers.
Although the popular stablecoin service reflects negative signals, it still stands out as the second most actively used stablecoin by the community. If regulations for stablecoins come in the future, it may be one of the projects that will survive.
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