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Coinbase’s Trading Volume Plummets due to USDC Anchoring

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Coinbase’s Trading Volume Plummets due to USDC Anchoring

On March 12, according to the data released by Crypto KOL and chain analyst Mr. Whale, the trading volume of Coinbase on the Cryptocurrency Exchange has plunged by 99.2% in the past 24 hours, which is the first time in history. The reason may be that the US dollar stable currency (USDC) (partially owned by Coinbase) triggered the anchoring in the bankruptcy of Silicon Valley banks.

Coinbase’s trading volume fell 99.2% in the past 24 hours

Analysis based on this information:


According to recent data released by chain analyst Mr. Whale, the trading volume of Coinbase on the Cryptocurrency Exchange has plunged by 99.2% in the past 24 hours, making it the first time in history for such a significant decline. This significant change can be attributed to the US dollar stable currency (USDC) that is partially owned by Coinbase at the time of writing. Reports suggest that this has triggered the anchoring of Silicon Valley’s banks in bankruptcy.

The USDC is a stablecoin that is considered among the most popular digital currencies that are backed by fiat currency or else assets with relatively stable values such as gold. The USDC operates on blockchain technology, which provides enhanced security and autonomy to its users. It also enables users to transfer digital currency internationally while having a predictable value.

The anchoring of USDC in the bankruptcy of Silicon Valley banks has been a matter of concern for the financial community. Since the USDC is partially owned by Coinbase, the impact of the crisis on the digital currency market was expected. As Coinbase’s trading volume plummeted, investors became extremely cautious and reluctant in buying or selling cryptocurrencies. The phenomenon indicates that the investors are more concerned about the stability of currencies than investing for profitability alone.

The situation also indicates that Coinbase needs to review its business model and strategies to cope with the changing market conditions. One way could be to explore other stablecoins and digital currencies that could provide stable returns for the customers. Moreover, Coinbase could collaborate with other tech firms, financial institutions, or blockchain ventures to leverage digital assets effectively.

This incident serves as a lesson to stakeholders in the cryptocurrency industry that the digital currencies’ stability and reliability are critical aspects that affect their value and demand. Firms and industries must undertake measures to mitigate the risks that emanate from the anchoring of digital currencies.

In conclusion, the decline in trading volume of Coinbase, a major player in the digital currency market, highlights the importance of currency stability and reliability in the industry. Coinbase and other stakeholders need to focus on enhancing measures that would promote currency stability and reliability to ensure a steady rise in demand and value.

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