According to a new report from CryptoQuant, USDC liquidity is at its highest level since February 2023. The report noted that Circle typically mints this many tokens in bearish periods.

USDC’s market cap has also increased by over $9 billion in the past month.

Circle’s USDC Liquidity Keeps Growing

CryptoQuant, a respected blockchain analysis firm, released a brief report today on USDC liquidity. Apparently, Circle minted enough USDC stablecoins to reach its highest level in nearly two years.

The report also claimed that a long-running partnership with a crypto market maker possibly contributed to this minting event:

“It is speculated that this is related to a strategic partnership with Cumberland, a market maker well known in the ETF space. It is unclear whether this liquidity will be deployed immediately or held in reserve. Looking at past [BTC] price patterns, USDC liquidity has typically been injected during periods of price consolidation or decline,” it claimed.

USDC is a popular stablecoin issued by Circle, although its dominance is significantly lower than Tether’s USDT. Still, the report’s assertion that USDC liquidity usually spikes in bearish periods seems odd compared to Circle’s performance.

The firm recently made a major political contribution, and its long-running plan to challenge Tether’s EU market dominance is paying off. In response to Circle’s EU play, Tether also began Go to Source to See Full Article
Author: Landon Manning