Glassnode: USDC on track to become the most valuable stablecoin?
Editor's Note: This article comes fromCrypto Valley Live (ID: cryptovalley)Editor's Note: This article comes from
, Author: Liesl Eichholz, translation: Li Hanbo, reprinted by Odaily with authorization.
BTC continued its upward momentum in its 44th week, closing the week with gains of more than 5%. But despite these gains, a decline in on-chain fundamentals could prevent Bitcoin from decoupling from traditional markets. secondary title Bitcoin Market Health Bitcoin had another impressive week, starting at $13,020 and closing at $13,690. Throughout week 44, it dipped below $13,000 a few times, but kept recovering from those drops, eventually gaining 5.2% overall and regaining more of the total crypto market share. Network Health dropped 12 points over the past week to a final score of 59, with some of the decline due to the Network Growth subcategory. But the bigger loss part is the decline in network activity, which is due to the decline in the transaction rate and the number of active addresses on the chain, which eventually led to a 17-point drop in network activity. The sentiment sub-index was the best performer of the 3 sub-indices, falling just 1 point to close the week at 68. While investor sentiment rose, the Savings Behavior sub-index saw a sharp drop of 65 points. This was largely caused by the Hodler Net Position Change indicator falling into negative territory, meaning Holders sold more than they bought this week. secondary title While Bitcoin’s on-chain fundamentals are down in week 44, its price is still doing well. Last week, we discussed the possible decoupling of Bitcoin from traditional markets, and the past week’s price action supports the idea that this may be an emerging trend. While stock prices have continued to fall, the price of Bitcoin has been rising. If Bitcoin can maintain this trajectory, it could be in for a bull run, and new all-time highs could be just around the corner. However, the recent decline in on-chain fundamentals may hinder Bitcoin's breakout at this stage. secondary title Performance relative to Bitcoin Meanwhile, ETH saw some gains in the previous week, but over the past week, ETH is down 7.4% against Bitcoin. Performance compared to USD After falling 1.7% in the previous week, BNB has lost another 6% in the past week. BCH was the least affected altcoin, losing only 1.1% of its value and retaining its fifth position. secondary title The supply of USDC is approaching 3 billion USDC is an ERC-20 stablecoin backed 1:1 by regularly audited fiat-dollar reserves. The asset was launched by Circle in September 2018 and is backed by the likes of Coinbase and Bitmain. USDC grew slowly in its first year and a half, reaching a supply of 1 billion in 21 months and reaching that goal in July 2020. After this milestone, however, the asset entered a rapid growth trajectory, doubling its supply to 2 billion in just 2.5 months.Bitcoin Market Health
Liquidity saw a 10-point decline throughout week 44, ending at 49 points. While transaction liquidity increased, the final transaction liquidity subcategory fell by 14 points due to a decrease in the number and velocity of on-chain transactions and an increase in on-chain transaction fees.
Altcoin Overview
Good altcoins underperformed throughout week 44. For the second week in a row, in terms of Bitcoin-calculated value, the biggest loss was still BNB, whose decline was second only to Bitcoin at -10.6%.
In addition to losing value relative to Bitcoin, the dollar value of good altcoins has declined over the past week. Among the top crypto assets, Bitcoin was the only one that ended the week in good shape.
