Try Quests to earn SOLUSDC Declining on Solana?
introduction
==Solana==
Solana is a fast-growing blockchain with striking similarities to Ethereum—often referred to as an “Ethereum killer. The Solana blockchain uses a proof-of-history consensus mechanism. This algorithm uses timestamps to define the next block in Solana’s chain. Unlike the earlier proof-of-work mechanism, proof of stake uses staking to define the next block. Staked tokens are held as collateral by the blockchain until validators reach a consensus about the chain’s next block. Solana uses a mixture of time-tested cryptographic strategies and fresh innovations to address the shortcomings of crypto’s first-wave solutions.
==USDC==
USDC is a fully-reserved stablecoin, which is a type of cryptocurrency, or digital asset. Unlike other cryptocurrencies that fluctuate in price, USDC is designed to maintain price equivalence to the U.S. dollar. USDC is a stable store of value that benefits from the speed and security of blockchain technology.
==USDC on Solana==
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, including Phantom, SolFare, Exodus and Binance’s highly popular Trust Wallet. The Solana network has several powerful tools, including Wormhole, a secure, decentralized bridge connecting it to Ethereum. The Solana ecosystem is robust, with more than 80 projects and millions of users. With Solana USDC, developers can build on this ecosystem and access Circle’s full suite of payments and treasury infrastructure built around USDC.
Methodology
The tables (==solana.core.dim_labels==) and (==solana.core.fact_transfers==) were used to obtain the following charts.
Daily and weekly information is calculated from ==November 29, 2021== to date.
To get the market cap of ==USDC==, ==USDT== we have used this formula (inflow_amount - outflow_amount).
The chart below shows the weekly USDC inflow and outflow volumes since December 2021, the big trend as seen for both outflows and inflows is bearish, both in the last week of December 2021 at ~$1.75 billion US dollar inflows have reached a maximum. ~$1.23 billion USDC outflow.
From the second week of September 2022, we see a local downward trend, which is still qualified.
The number on the right shows that the total USDC market cap on Solana Networks is US$3.16 billion.
The chart on the right shows the cumulative market cap for USDC in Solana, as we can see that the bullish slope of the chart is very steep in the early weeks of the chart and the bullish trend happens very quickly which has increased by 2.5x in 6 weeks, but as we go forward we see this decline. We are in a trend so that in recent weeks the chart seems to be more stable and with a decreasing slope.
In the above two charts, the top 10 wallet addresses that had the most USDC input are displayed, as you can see, the address (6ZRCB7AAqGre6c72PRz3MHLC73VMYvJ8bi9KHf1HFpNk) had the largest amount of input, and the chart on the left shows the weekly input value of these 10 volts. As you can see, the entry process has been decreasing.
In the above two charts, the top 10 wallet addresses that had the most USDC output are displayed, as you can see, the address (6ZRCB7AAqGre6c72PRz3MHLC73VMYvJ8bi9KHf1HFpNk) had the largest amount of output, and the chart on the right shows the weekly output value of these 10 volts. As you can see, the output trend has been decreasing.
As we see below top 10 places that removed $USDC from Solana network is being sent to are 1-ftx hot wallet 2-coinbase hot wallet 3-coinbase: hot wallet 4-huobi global hot wallet 5-gate.io hot wallet in which most of removed $USDC has been sent to FTX (almost 25 times of second place)
FTX has been known for activity ground of whales on the market so this tells us that whales has had a role in decreasing of $USDC market cap on Solana
Bar chart below shows weekly inflow and out flow volume of $USDT since December 2021, its mega trend as can be seen for both outflow and inflow is bearish, they both got maxed on second week of May 2022 with ~250M $USDT inflow and ~264M $USDT outflow.
We see local decreasing trend since second week of September 2022 that this trend is still eligible.
The number on the right shows that the total USDT market cap on Solana Networks is US$200 M.
The chart on the right shows cumulative market cap of $USDT on Solana, as we see major trend of it is decreasing throughout time frame which shows $USDT has been removed from Solana constantly
Though on last 2 weeks there has been spike on cumulative chart
As we see below top 5 places that removed $USDT from Solana network is being sent to are 1-ftx hot wallet 2-huobi global hot wallet 3-gate.io hot wallet 3-kucoin hot wallet 5-usdt in which most of removed $USDT has been sent to ftx hot wallet
Top 5 places that removed $USDT from Solana network on last 2 months is being sent to are 1-ftx hot wallet 2-huobi global hot wallet 3-kucoin hot wallet 4-gate.io hot wallet 5-kraken hot wallet in which most of removed $USDT has been sent to ftx hot wallet
Kraken is added to top 5 places that $USDC is being sent to on last 2 months
The chart below shows the USDC market value on Solana or NetFlow each week, plotted by subtracting outflows from inflows, so minus weeks indicate outflows are greater than inflows and positive weeks are inflows greater than outflows. Is.
As we can see the highest inflow occurred in the first week of December where NetFlow was +896.5 million USD and the highest outflow occurred in the second week of January where NetFlow was 357.9 million USDC.
NetFlow $USDC on the Solana network has been getting closer to 0 over time, indicating that the amount of inflow and outflow is getting closer and closer to each other over time.
The bearish state of the entire crypto market is most likely one of the reasons why users tend to keep their USDC in Solana, and several Solana network outages in 2022 could also be another reason.
Therefore, it can be said that the widespread base situation throughout the ecosystem has been effective for this reduction
NetFlow last four weeks was -12M, +293K, +25M and -924K.
As we see below top 10 places that removed $USDC from Solana network on last 2 months is being sent to are 1-ftx hot wallet 2-coinbase hot wallet 3-coinbase: hot wallet 4-gate.io hot wallet 5-kucoin hot wallet in which most of removed $USDC of last 2 months has been sent to FTX (almost 25 times of second place)
Kucoin is added to top 5 places that $USDC is being sent to on last 2 months
Bar chart below shows market cap of $USDT on Solana or NetFlow of each week, which is drawn by subtracting outflows from inflows, so minus weeks shows that outflows has been more than inflow and positive weeks shows that inflows has been more than outflows.
As we see most inflow occurred on last week of December in which NetFlow has been +90M $USDT and most outflow occurred on second week of June in which NetFlow has been -80M $USDT
NetFlow of $USDT on Solana network has been getting closer to 0 over time which shows amount of inflow and outflow has been getting closer more and more to each other over time. except we see a inflow spike on last week of September 2021, which NetFlow spiked to +90M
Bearish status of whole crypto market most probably is one the reasons which users tend to not keep their USDT on Solana
Conclusion
- Market cap of $USDC has decreased 10M on last month
- Inflows and outflows of $USDC has been decreasing
- Top 5 wallets with most inflows and outflows are same wallets, which tells us that users who had most inflows USDC into Solana also removed their USDC from Solana
- $USDC mostly has been sent to FTX which is one of the popular CEXs for whales
- Market cap of $USDT has increased 74M on last month so $USDT has had different performance than USDC on Solana and it was increasing on last weeks and most of removed $USDT has been sent to FTX as $USDC
About me:
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Author: Hojjat
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Discord: hojjat7878#8809
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Twitter: @hojjat8d
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Email: hojjat78delshad@gmail.com
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Appendix
The solution of this question and the queries are completely used from the filipside database
The construction of the dashboard was also used from the site app.flipsidecrypto.com/velocity, which belongs to flipside