Overview

USDC (SOL) is a stablecoin native to the Solana blockchain that is pegged to the US Dollar. As a Solana Program Library token, or SPL, it is compatible with all wallets that offer Solana assets, such as Phantom and Slope.

USDC (SOL) can be held, swapped with other SPL assets, or paired in liquidity pools on most major Solana DeFi applications.

It looks like over the last few weeks the market cap of USDC on Solana has been declining. \n

Methods

The main idea of this dashboard is to evaluate the possible cause of this USDC marketcap declining.

To do so, we are gonna analyze several metrics such as:

• Where is USDC being removed from the ecosystem

• Where is USDC being sent to

• Does these movements coming from big whales or from more broad-based throughout the ecosystem

  
  Finally, we are gonna see if there are other stablecoins also dropping in market cap on Solana.

Distribution of USDC volume received and sent from Solana

In this first charts we can see the evolution of inflows and outflows of USDC on Solana.

We can see how there were some days in the mid of September, coinciding with the Ethereum Merge, where a highest amount of volume was moved in both direction. The day previous to the merge and the day after the merge were the worst days in terms of netflow, where -18M and -22M were withdrawn more than deposited respectively. The volume also has spiked during these first October days, with some of them reaching the highest loses over the past 2 months.

USDC marketcap evolution

Looking from where is USDC being removed from the ecosystem and where is it being sent to, we can see similar behaviors in both cases. It seems that the top interactors are Coinbase hot wallets and FTX hot wallet, showing great differences from the rest of the wallets.

If we take a look at the daily amounts, we can see how the FTX movements are constant over time. However, the Coinbase hot wallets made moves basically when the volume spiked. Then, we can assess that some volatility could be provided by this Coinbase movements.

Whales vs regular users outflows

Key insights

• We can see how there were some days in the mid of September, coinciding with the Ethereum Merge, where a highest amount of volume was moved in both direction. The day previous to the merge and the day after the merge were the worst days in terms of netflow, where -18M and -22M were withdrawn more than deposited respectively. The volume also has spiked during these first October days, with some of them reaching the highest loses over the past 2 months.
• The Coinbase hot wallets made moves basically when the volume spiked. Then, we can assess that some volatility could be provided by this Coinbase movements.
• If we take a look at the outflows, we can see how when the volume removed is low, the major of them comes from the regular users, but when the volume increase considerably, the major of them comes from whales.
• For USDT when the volume goes up, the netflow becomes positive. However, during the past two months, the marketcap of USDT has lost value as well as we can take in the second image.

Considering the whales movements and comaring with the regular users volume moved, we can see how the behaviors are practically opposite. When the regular volume becomes more positive, the whales volume becomes more negative and on the other way around. Basically, if we take a look at the outflows, we can see how when the volume removed is low, the major of them comes from the regular users, but when the volume increase considerably, the major of them comes from whales.

In fact, we can see how there are some specific days when the volume spiked and seems to follow a concrete pattern. It seems like every two weeks, some whale takes action and remove a huge quantity of USDC.

Evolution of other Solana stablecoins

In this final chart, we can see the evolution of some other Solana stablecoins such as: USDT.

As we can see, in this case, the major of the days have similar volumes, but some specific days the volume spiked. In this ccase, when the volume goes up, the netflow becomes positive. However, during the past two months, the marketcap of USDT has lost value as well as we can take in the second image.

This dashboard can be updated by selecting the number of weeks to be evaluated. Please, take into account that the results could be take around 5 minutes to appear. The default scenario is analyzing the past 4 weeks.