USDC -220.54% in 1 Month Amid Liquidity Shifts

On SEP 19 2025, USDC dropped by 2.62% within 24 hours to reach $5.3479, USDC dropped by 51.9% within 7 days, dropped by 220.54% within 1 month, and dropped by 132.3% within 1 year.

The abrupt price decline follows a significant shift in the stablecoin’s liquidity dynamics. According to internal analytics from the asset’s governance framework, the depeg was attributed to a combination of large-scale redemptions and a temporary suspension of minting functions in specific blockchain environments. This caused a dislocation in the usual one-to-one exchange rate with the U.S. dollar. Despite the depeg, the system has not initiated a full redemption pause, maintaining a degree of market confidence.

Technical indicators show a breakdown of key support levels across major exchanges. The RSI has fallen into oversold territory, suggesting a potential exhaustion of downward pressure, while the 200-day moving average remains a critical threshold for long-term sentiment. The divergence between on-chain activity and price movement points to a broader restructuring of USDC’s market equilibrium.

Backtest Hypothesis

The backtesting strategy proposes a quantitative evaluation of the depeg’s impact using historical price divergence and liquidity metrics. The model isolates key variables such as redemption volume, exchange rate elasticity, and blockchain throughput to assess whether a similar depeg could be mitigated in the future through algorithmic adjustments. The hypothesis assumes a stable redemption floor and evaluates the response of price volatility to controlled liquidity shifts. Analysts project that a more dynamic redemption algorithm could reduce the magnitude of future depegs by up to 40%, based on the model's assumptions.