Record-Breaking $407.8 Million USDC Minted by Circle, as DAI Stablecoin Supply Also Surges
In the world of cryptocurrency, minting refers to the process of creating new coins or tokens. Recently, Nansen, a blockchain analytics company, reported that Circle, the issuer of the stablecoin USDC, had minted a staggering $407.8 million in USDC about 1 hour ago. This is the largest USDC minting in the past 7 days.
Circle minted $407.8 million $USDC about 10 minutes ago
This is the largest USDC minting in the last 7 days
Hourly net change: +$463.8 million#NansenQuery pic.twitter.com/WnHr0lsFyy
— Nansen 🧭 (@nansen_ai) March 13, 2023
USDC is a stablecoin that is pegged to the US dollar, which means that its value remains relatively stable compared to other cryptocurrencies that are known for their volatility. The sudden increase in the supply of USDC could have several implications for the cryptocurrency market.
According to data from CryptoQuant, the supply of another stablecoin, DAI, has also increased significantly in the past two days. The total supply of DAI has gone up by 1.4 billion to 6.35 billion, and this increase is primarily driven by the MakerDAO PSM-USDC-A Vault. The debt of this vault has increased by 1.72 billion in the past two days, which has led to an increase in the supply of DAI.
The rise in the supply of stablecoins like USDC and DAI could be due to a variety of reasons. One possible explanation is that investors are seeking safety in stablecoins amid the current volatility in the cryptocurrency market. In recent weeks, we have seen a sharp decline in the prices of many cryptocurrencies, which has led some investors to seek refuge in stablecoins.
Another reason could be related to recent news about bank failures, as reported by AZCoin News. In the wake of these failures, the value of USDC had dropped below its peg of $1. However, USDC has since recovered and is now trading at $0.99.
Overall, the recent surge in the supply of stablecoins like USDC and DAI could have significant implications for the cryptocurrency market. As more investors turn to stablecoins as a safe haven in the current market conditions, we could see increased demand for these coins, which could drive up their prices.
Read more:
- USDC Recovers From Peg Loss, Trades At $0.99 Amid Bank Failures
- USDC Recovers To $0.96 After Circle Burns $649.3 Million In Tokens
- Circle (USDC) Is Expected To Successfully Face This Redemption Next Week, Experts Say