Key Points:
- Circle just burnt 314,167,155.05 USDC ($311,419,134) with their novel redemptions scheme.
- This service allows USDC holders to exchange their tokens for US dollars at a 1:1 ratio, guaranteeing that the USDC value stays steady and consistent.
According to on chain data site Whale Alert, Circle has just burnt 314,167,155.05 USDC out of its circulation.
Circle has just burnt 314,167,155.05 USDC ($311,419,134) through its unique redemptions program as part of its continued goal to keep the USDC stablecoin stable. This service allows USDC holders to exchange their tokens for US dollars at a 1:1 ratio, guaranteeing that the USDC value stays steady and consistent.
Circle is taking a proactive approach to lowering the quantity of USDC tokens in circulation by burning roughly $311 million in USDC. This step will ultimately contribute to the stablecoin’s stability, which is critical for its broad acceptance as a trustworthy means of trade.
Circle’s redemptions program is a critical instrument in assuring USDC’s long-term prosperity. Circle is assisting in ensuring that USDC is a reputable and widely accepted stablecoin by offering a clear and dependable redemption option for USDC holders. Circle is displaying its dedication to the integrity of this crucial coin with this latest batch of redemptions.
Circle generated $407.8 million $USDC this morning, according to Coincu. These is the most recent minting, bringing the net change to $463.8 million. USDC was the stablecoin severely damaged by the bankruptcy of Silicon Valley Bank last week, as it revealed it had a $3.3 billion exposure to the bank. This figure is several times greater than the anticipated $1 billion, and it has fueled the USDC flight. USDC hit a low of $0.93 at one time, the lowest in its existence. Circle previously stated that it was pleased to see the US government and financial regulators taking important steps to mitigate the risks of certain parts of the banking system.
SVB accepts 100% deposits. The entire USDC reserve is secure, and the remaining SVB funds will be transferred to BNY Mellon. USDC liquidity will resume when banks open on Monday. Today’s cryptocurrency market is also active again, thanks to these positive signals, with green books overflowing. After a weekend of positive market movements, stablecoin USDC has regained its peg levels.
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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