Explaining how USDC Stablecoin lost utility after the collapse of Tornado Cash

USDC became a victim after sanctions were imposed on cryptocurrency mixer Tornado Cash. Let's break down how stablecoin lost its usefulness and how it began to show a not-so-great possible scenario in the future.

Stablecoin from Circle once rose to fame after it surpassed Tether's USDT in the number of daily transactions on the Ethereum blockchain. However, things may not favor stablecoin, as USDC continues to show a rather gloomy scenario over the last month.

According to CoinMarketCap, USDC's market supply is down more than 2% at $51 billion. In August, that figure was at $54 billion. Here's a three-month scenario for the stablecoin, as mentioned earlier.

In addition, according to an in-depth analysis from Messari, USDC's usefulness has also been hit hard, especially after the Tornado Cash sanctions fiasco. USDC issuer Circle began blocking wallets associated with Tornado Cash, which has come under U.S. sanctions.

It has frozen more than $70,000 USDC in wallets linked to Tornado Cash, which has been hit by sanctions. Consequently, obeying the decision of the U.S. regulator.

Meanwhile, the Binance exchange announced that it will stop supporting USDC trading pairs. Instead, the crypto exchange will automatically convert USDC deposits to BUSD.

Therefore, we should not expect the rise of this stablecoin for now. Although there were cases that started as bad but broke through their peak at the end.