USDC is bouncing back with smart contract surge, here’s why
According to data from blockchain analytics firm Glassnode, USDC – one of the most commonly utilized stablecoins – has experienced an increase in its supply within smart contracts.
This positive development starkly contrasts the coin’s recent struggles and marks a notable deviation from other stablecoins as well.
Glassnode’s latest report on 27 March highlighted a promising surge in the percentage of USDC supply held in smart contracts. The data indicated that the percentage has risen to 42.08%, as depicted in the chart. It marks a significant increase, reaching a six-month high for the stablecoin.
Source: Glassnode
Upon closer examination of the chart, it becomes evident that the metric experienced a decline towards the end of 2022. It has since picked up momentum and started an upward trend in March. It maintained its growth even during the recent bank run, resulting in FUD around it.
The recent increase in USDC supply held in smart contracts becomes even more significant when compared to USDT. According to data from Glassnode, the percentage of USDT supply in smart contracts as of this writing was 14.0%, with the highest percentage this year reaching only 14.7%. It indicated that USDC was more extensively being utilized for smart contract-related transactions.
Source: Glassnode
An analysis of the Exchange netflow volume comprising both inflow and outflow indicated that USDC had been experiencing a steady and robust flow across all exchanges.
However, the outflow volume has been notably higher recently and stood at over 55 million, as of this writing.
Source: Glassnode
Furthermore, according to Santiment’s transaction volume data, it has been exhibiting normal transactional activity for a stablecoin, with a volume of
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