The USD Coin (USDC) stablecoin experienced a frenzy of activity on February 10, 2023, with several billion dollars of stablecoin burned and minted on the Ethereum (ETH) blockchain for an increase in USDC supply on the blockchain of 148 million of dollars.
Blockchain data shows that the value of USDC tokens on the Ethereum blockchain has been significantly changed by Circle with the burning of $4.286 billion and the minting of $4.434 billion – for a supply increase of $148 million dollars on February 10, 2023.
Please keep in mind that some of these tokens may have been transferred to other blockchains or from other blockchains since only Ethereum data is considered.
Despite the partial data, it is possible to conclude that the overall supply probably did not fluctuate more than usual based on data from the leading crypto data provider. CoinMarketCap.
Firm data shows USDC’s market capitalization fell from a midday low of $41.44 billion to a high of $41.57 billion before falling to its current value. of $41.48 billion. At least some of this change can be attributed to fluctuations in the value of the stablecoin currently priced at $0.9999.
Coinbase – a major US-listed cryptocurrency exchange – apparently played a key role in the inexplicable activity that burned and re-hit billions of tokens within hours.
This institution alone received a total of $4.731 billion from USDC, more than was minted on the Ethereum blockchain that day.
Additionally, Coinbase also deposited to its Circle deposit address $4.675 billion – more than was burned that day – in 29 transactions on February 10, 2023. Overall, Coinbase withdrew $56 million more Circle than he filed today.
The report follows Coinbase’s launch of a campaign to encourage users to switch from Tether (USDT) to USDC by waiving all conversion fees. In its campaign announcement, Coinbase describe USDC as the “most reputable” stablecoin on the market.
The institution explained that trust and stability were key to attracting and retaining customers. However, some quarters of the crypto community did not take Coinbase’s call to sell Tether (USDT) for USDC at face value.
Several crypto-twitter personalities have made allegations about the USDC, with some going so far as to call it a “plot on the brink of collapse”. While USDT is widely considered controversial, USDC also has its own share of controversy.
Particularly notable is the scandal that resurfaced in August 2021, when it was discovered that the USD Coin was not entirely backed by the US Dollar, while a significant portion of its support was indeed backed by more speculative assets.