Data: The total position of USDC with smart money and active wallet addresses has reached a low point in several months
It is reported that according to Nansen’s data, the total balance of USDC in the address of “smart money” wallet is about 485 million dollars in 1396 wallets, down from 700 million dollars in 1455 wallets a month ago and 1.02 billion dollars in 1478 wallets a year ago. At the same time, the proportion of smart money in all stable currencies has dropped to 21%. At the beginning of this year, this proportion was close to 30%, and reached a record high of 38% at the end of August 2022.
Interpretation of this information:
According to reports, data from Nansen indicates that the total balance of USDC in the “smart money” wallet address has decreased from $1.02 billion in 1478 wallets a year ago to $485 million in 1396 wallets, a significant drop. Moreover, the proportion of smart money in stable currencies has also decreased drastically from 38% in August 2022 to 21% in recent times. This decline in smart money’s proportion indicates a shift in investor behavior, as more investors are opting for traditional safe-haven assets like gold and silver.
Experts say that the drop in the USDC balance in the smart money wallet is due to several reasons. A decline in DeFi activity is one such reason, as many investors who used stablecoins for liquidity have pulled out of the market. Additionally, the recent market slump has also deterred investors from taking risks, which may have led them to pull out of the USDC wallet.
Furthermore, the decrease in the proportion of smart money in all stable currencies could suggest that traditional investors are becoming less interested in cryptocurrencies, especially as the fight against regulating crypto assets heats up. Governments across the world are looking to regulate these assets or outright ban them, which could limit their appeal to retail and institutional investors alike.
In conclusion, the decrease in USDC balance and the proportion of smart money in all stable currencies indicate a shift in investor behavior. This is likely due to the fall in DeFi activity and the recent market slump, as well as the increasing regulatory pressures against cryptocurrency. The three significant keywords that summarize this content are: Smart Money, Stable Currencies, and Regulatory Pressures.
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