Since the Tornado Cash affair, Circle’s USDC stablecoin’s market valuation has fallen precipitously. The market capitalization of USD Coin , which fell from $53.3 billion to just under $43.9 billion during the previous month, has decreased by almost 20%.
Although USDC started to lose popularity in July, the move to freeze over 75,000 USDC of cash related to 44 Tornado Cash addresses was a turning point that led to anger and a wave of withdrawals.Even MakerDAO, which had a significant portion of its reserves backed in USDC, viewed Circle’s actions as a breach of privacy rights.
Therefore, even if USDC’s capitalization keeps declining, significant projects are still placing bets on its potential for future recovery. BUSD’s market cap as of right now is $21.62 billion. Unlike USDC, Binance’s native stablecoin has consistently increased by more than 22% since 12 August, rising from $17.64 billion to over $21.62 billion.The USDC and EUROC issuing Circle seeks to transition to full-reserve commercial banking. To grow its blockchain-based payments network, it is establishing strategic alliances.