{"id":364358,"date":"2025-02-01T16:15:28","date_gmt":"2025-02-01T10:45:28","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=364358"},"modified":"2025-02-01T16:15:28","modified_gmt":"2025-02-01T10:45:28","slug":"circles-usdc-dominance-could-be-bearish-for-crypto-market-heres-why-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/circles-usdc-dominance-could-be-bearish-for-crypto-market-heres-why-crypto-news\/","title":{"rendered":"Circle\u2019s USDC Dominance Could Be Bearish for Crypto Market, Here\u2019s Why – Crypto News"},"content":{"rendered":"

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Circle\u2019s native USDC stablecoin has been expanding its market footprint with major minting happening on the Solana blockchain this month. However, historical trend shows that the growing dominance of the Circle stablecoin is bearish for the crypto market. With Trump tariffs kicking in starting today, the global digital assets sector is already seeing some selling pressure.<\/p>\n

Circle\u2019s USDC Dominance \u2013 A Boon or Bane?<\/h2>\n

Circle has minted an additional 250 million USDC on the Solana blockchain, bringing the total issuance on Solana to $6 billion so far in 2025. This includes a significant 1.25 billion USDC minted in the past week alone, highlighting growing activity and demand on the network, as per data by Spot On Chain<\/a>.<\/p>\n

However, crypto analytics platform Alphractal believes that the rising Circle USDC dominance<\/a> could not be a good thing for the crypto market. It further added that this shift comes amid a decline in altcoins, as many of the sell-offs have resulted in a substantial conversion of assets into USDC. In the post on the X platform, Alphractal noted:<\/p>\n

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\u201cAn interesting point is that USDC\u2019s dominance has reached a key resistance level, the same as in 2021. If this metric continues to rise, it could be a bearish signal for the crypto market, indicating increased risk aversion. On the other hand, if it declines, it could pave the way for new market highs\u201d.<\/p>\n<\/blockquote>\n

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Source: Alphractal<\/figcaption><\/figure>\n

Solana Stablecoin Supply Jumps 73%<\/h2>\n

The total supply of stablecoins on the Solana network has skyrocketed by over 73% since mid-January. This is largely due to the launch of the TRUMP meme coin<\/a> and the MELANIA meme coin on the Solana network during the Donald Trump inauguration. This was when the USDC minting on Solana skyrocketed in a very short period.<\/p>\n

A January 30 report from research firm CCData reveals that Solana\u2019s stablecoin supply now stands at $11.1 billion, marking an impressive 112% growth since the start of the year. It noted:<\/p>\n

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\u201cThis increase coincided with a surge of capital inflows to the network following Donald Trump\u2019s launch of his memecoin, $TRUMP, on Solana, which resulted in record [decentralized exchange] trading activity\u201d.<\/p>\n<\/blockquote>\n

Stablecoin Crypto Market Surges to $200 Billion<\/h2>\n

Data analysis platform CCData reported on January 31 that the stablecoin market cap surged by 73%, climbing from $121.18 billion in August 2023 to an all-time high of $211 billion.<\/p>\n

USDT, the leading stablecoin by market capitalization, reached a record high of $140 billion in December 2023. As of January 31, its market cap stands at $139.4 billion, maintaining a dominance of 63.84%. In Q4 2024, USDT stablecoin issuer Tethe<\/a>r reported $13 billion in profit.<\/p>\n

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Bhushan Akolkar <\/p>\n<\/p><\/div>\n

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. <\/p>\n<\/p><\/div>\n

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n

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Circle\u2019s native USDC stablecoin has been expanding its market footprint with major minting happening on the Solana blockchain this month. However, historical trend shows that the growing dominance of the Circle stablecoin is bearish for the crypto market. With Trump tariffs kicking in starting today, the global digital assets sector is already seeing some selling […]<\/p>\n","protected":false},"author":2,"featured_media":184743,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[192,29,198,194,195,199,196,193,197,200],"class_list":["post-364358","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-blockchain-business","tag-business","tag-coins","tag-crypto-business","tag-cryptocurrency-business","tag-fiat","tag-metaverse-business","tag-nft-business","tag-token","tag-token-business"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/364358","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=364358"}],"version-history":[{"count":3,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/364358\/revisions"}],"predecessor-version":[{"id":364361,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/364358\/revisions\/364361"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/184743"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=364358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=364358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=364358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}