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.
Circle USDC Continues Circulation Fall After March Crisis 2

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.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Will Bitcoin Crash or Soar Past $105K in 2024?

Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…

57 minutes ago

The Best Crypto for Passive Income? 10% Weekly Gains and 20% Final Surge—Qubetics Mirrors Cosmos’ Early Success!

There’s always that one coin people wish they hadn’t overlooked. For many, Cosmos ($ATOM) is…

1 hour ago

Cosmos Developer Interchain Foundation Sold 3000 ETH Today

Cosmos Developer Interchain Foundation sold 3000 ETH from its ICO today, totaling 21,600 ETH sold…

2 hours ago

Zircuit Launches ZRC Token: Pioneering the Next Era of Decentralized Finance

George Town, Grand Cayman, 22nd November 2024, Chainwire

3 hours ago

Inflation Warning By Vanguard Amid Tariffs And Labor Issues

Inflation Warning by Vanguard highlights risks during Trump’s term, citing tariffs and tighter labor markets…

3 hours ago

Clanker Token Trading Volume Hits $59.8 Million High On November 21

Clanker token trading volume hit $59.8M on Nov 21, accounting for 14.75% of PumpFun. Fee…

3 hours ago

This website uses cookies.