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USDC Circulation Soars with $2.6B Growth in Just 7 Days

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USDC Circulation Spikes by $2.6B in Just 7 Days

Key Points:

  • Circle issued 4.6B USDC and redeemed 2B USDC, bringing total USDC circulation to 55.7B.
  • Holdings include $6.8B in cash and $48.9B in the Circle Reserve Fund, ensuring strong liquidity.
  • The surge in USDC circulation signals growing adoption for trading, DeFi, and payments amid market volatility.

According to official data, USDC circulation saw a significant increase in the seven days ending February 6, with Circle issuing approximately 4.6 billion USDC while redeeming around 2 billion USDC.

USDC Circulation Surges as Issuance Outpaces Redemptions

USDC circulation growth of 2.6 billion USDC, reflecting strong demand for the stablecoin. As of February 6, the total circulation of USDC has reached 55.7 billion, backed by an equivalent $55.7 billion in reserves. These reserves include $6.8 billion held in cash, ensuring liquidity for redemptions, while the majority—$48.9 billion—is managed through the Circle Reserve Fund.

The surge in USDC highlights growing adoption and market confidence in the stablecoin, which is widely used for crypto trading, DeFi applications, and cross-border payments. Market analysts suggest this expansion may indicate increased demand for stable assets amid market volatility.

Read more: Circle Internet Financial Completes Hashnote Purchase to Expand USDC

Stablecoin Demand Increases Amid Market Volatility

With USDC circulation now at its highest level in months, investors are closely monitoring further issuance trends and Circle’s reserve management strategy. The latest data reaffirms USDC’s full backing, reinforcing its position as a leading USD-pegged stablecoin in the market.

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

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Avatar of Yuna Kim

Yuna Kim

09 February 2025, 04:54:30 GMT +0000

With a deep passion for unraveling the complexities of finance and crypto, I have dedicated over 5 years to financial journalism, covering everything from traditional equities to the forefront of venture capital. I believe that crypto is a fascinating puzzle, and I thrive on helping people make sense of it.

As a journalist at Coincu, my mission is to deliver clear, insightful, and well-researched content that empowers readers to navigate the ever-evolving financial landscape with confidence.

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