Circle USDC Continues Circulation Fall After March Crisis

Key Points:

• Circle’s USDC is still showing less attractiveness after being affected by the collapse of SVB.
• The circulation of the stablecoin continues to drop $400 million in the past week.
• Its rival, USDT, is still dominating the market.

Circle has enough reserves in its treasury to support its stablecoin USDC. Notwithstanding the belief in its stablecoin, USDC underperformed.

According to official data, in the past 7 days, Circle issued a total of $600 million in USDC and redeemed $1 billion in USDC, and the circulation decreased by about $400 million. As of May 4, the total circulation of USDC was $30.1 billion, and the reserve was $30.2 billion, including $4.8 billion in cash and $25.4 billion in short-term US treasury bonds.

USDC’s substantial reserves, which include a large amount in short-term US Treasury bonds, may help reassure consumers that their holdings are backed by dependable and safe assets.

Circle generated 140 million USDC yesterday and transferred it to Coinbase on behalf of a significant buyer, according to blockchain intelligence firm Arkham.

USDC Coin was the most troubled stablecoin when its Silicon Valley Bank (SVB) holdings failed. Notwithstanding the challenges that USDC has experienced, Circle, the stablecoin’s issuer, has continued to profit from its development.

Despite demonstrating reserves, USDC’s market worth continued to fall. At the time of publication, USDT was eroding the former’s market share. Currently, the circulating supply of USDT is still leading the stablecoin market with over $82.2 billion. Compared to USDT, USDC is quite modest with more than 30 billion dollars but it is still the 2nd stablecoin.

If the US government acts quickly and offers more clarification on the stablecoin area, the market may improve.

Yet, as of press time, interest in USDC has continued to fall. Fresh addresses lost interest in the stablecoin as well. This was shown by the stablecoin’s decreased network expansion over the previous month.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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Harold

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