Try Quests to earn SOLUSDC Declining on Solana?
It looks like over the last few weeks the market cap of USDC on Solana has been declining.
Introduction
Solana is a blockchain platform designed to host decentralized, scalable applications. Founded in 2017, it is an open-source project currently run by Solana Foundation based in Geneva.
Solana USDC launched in January 2021 and already has extensive adoption across leading crypto exchanges such as FTX, DeFi ecosystems such as Serum, Raydium, and Saber and Mango Markets, creator platforms, such as Audius, NFT marketplaces like Metaplex, and several native wallets.
It looks like over the last few weeks the market cap of USDC on Solana has been declining. To investigate this issue, we will answer the following questions in this dashboard: What appears to be the cause of this? Where is USDC being removed from the ecosystem and where is it being sent to? Does this trend seem to be driven by a few big whales, or does it seem more broad-based throughout the ecosystem? Are other stablecoins also dropping in market cap on Solana?
Conclusion
The analysis showed that in the past weeks, the market cap of USDC in Solana has been decreasing, and the reason for this is the increase in the amount of USDC output by several big whales. Also, the hacking of Solana on August 2, 2022, can be one of the reasons for the decrease in the market cap. Considered this case. The data showed that 87 percent of outgoing USDCs are destined for FTX HOT WALLET, but in the past weeks, most of the USDC sent from Solana was to Coinbase Hot Wallet and Coinbase: Hot Wallet. Also, by examining other stable coins of Solana, we have seen a decrease in the market cap of USDT in the past few weeks, but in the last weeks of September, we have had a significant increase in the amount of USDT entering Solana (121.5 million).
The Market cap of the token over time is addressed here with the cumulative value of the same for the past three months.
The stable coin marketcap value over time is calculated and charted here with time for both USDC and USDT stable coins and it is seen that for USDC the outflow is higher than the inflow in the recent days.
The bar chart above shows the weekly USD inflow and outflow since January 2021. As can be seen, both inflows and outflows have been in a negative megatrend that peaked in the second week of May 2022 with a total of around $250. million inflows and more than 264 million in outflows.
We have seen a local downtrend since the second week of September 2022, which shows that the trend is still valid.
According to these charts:
- The highest USDC amount that used by
coinbase:hot walletwas about 208M on October 5th. - The highest USDC amount that used by
coinbase hot walletwas about 119M on September 15th. - The top First CEX was
ftx hot walletwith using about 14.7B USDC and consisted 87.9%.
The bar graph above shows the total volume of USDC removed from Solana for various purposes.
It can be seen that the top destinations are mainly FTX and Coinbase CEX.
The volume of USDC removed from Solana to the top five destinations is as follows:
Ftx Hot Wallet: 1.8B (50%)
Coinbase: Hot wallet: 912 million (23%)
Coinbase hot wallet: 763 million (22%)
Gate.lo hot wallet: 87 million (3%)
Hot Coin Wallet: 70 million (2%)