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“The Dwindling Smart Money: USDC on the Decline”

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The Dwindling Smart Money: USDC on the Decline

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.

Data: The total position of USDC with smart money and active wallet addresses has reached a low point in several months

Analysis based on this information:


The message highlights a decline in the total balance of USDC (a stablecoin pegged to the US dollar) in wallets that belong to “smart money” investors. According to Nansen’s data, the total balance of USDC in smart money wallets is now at $485 million, down from $700 million a month ago and $1.02 billion a year ago. This indicates a clear trend of decreasing interest in USDC among the investors that qualify as “smart money.”

The concept of “smart money” refers to institutional or high net worth investors who are considered to have superior knowledge and resources compared to retail investors. They have the ability to move markets and influence prices. Therefore, the trends in their investment activity are often seen as important indicators of market sentiment.

The decline in the proportion of USDC held by smart money investors is another key point in the message. The proportion of smart money in all stablecoins has fallen from close to 30% at the beginning of the year to 21% currently. This suggests that smart money investors are diversifying their portfolios away from USDC, possibly because they anticipate lower returns or higher risks.

The message also cites a record high proportion of 38% of smart money in all stablecoins at the end of August 2022. This indicates that there was a significant interest in USDC among smart money investors at that time. However, the subsequent decline in smart money’s holdings of USDC suggests that this interest was not sustained over time.

Overall, the message implies that smart money investors are becoming less interested in USDC as a stablecoin. This decline can have several implications for the broader cryptocurrency market, especially since USDC is one of the most popular stablecoins with a market capitalization of over $23 billion. The trend may indicate that smart money investors are shifting their focus to other stablecoins or alternative investments altogether. Additionally, it could signal a forthcoming drop in demand for USDC, which could spell trouble for issuers and users of the stablecoin.

In conclusion, the dwindling smart money trend in USDC has significant implications for investors and the broader cryptocurrency market. The message underscores the importance of paying attention to the investment activity of institutional investors, especially when it comes to stablecoins.

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