$USDC

DS Random Writing USDC has recently performed a bizarre balancing act at the $1 price level. On the surface, everything seems calm, but underneath, there are dark currents surging. Circle's latest audit report reveals key details—80% of its reserves have been invested in U.S. Treasury reverse repurchase agreements, earning a 5% interest spread that is dripping with profits. This practice of "arbitraging crypto funds against traditional finance" has fundamentally altered the nature of stablecoins. More subtly, in the past month, USDC's circulation has shrunk by 18%, while on-chain transaction numbers have surged by 300%, indicating that big players are engaging in a "flash game": settling in USDC during the day and then converting back to dollars at night to earn overnight interest.

The Federal Reserve's policies are tightening the grip on USDC's lifeline; when reverse repo yields drop below 3%, Circle redeemed 1.2 billion USDC in a single day. This "interest rate-sensitive nature" has caused USDC's market value to be increasingly distanced by Tether, which has managed to inflate its supply to a scale of hundreds of billions through mysterious offshore banking operations. The most ironic part is that when Silicon Valley Bank collapsed, USDC briefly lost its peg, and now it has become an important player in the U.S. Treasury market, making this boomerang effect quite humorous.

(On-chain monitoring detected some edgy operations from a market maker's address: before the Federal Reserve's interest rate meeting, there was a concentrated sell-off of USDC in exchange for USDV, which is a new algorithmic stablecoin that managed to absorb a selling pressure of around 2 billion, with BlackRock providing liquidity in the dark pool...)