- Circle reportedly reported redeeming 2.6 billion USDC in 7 days and issuing 500 million USDC.
- As of March 17, the entire circulation of USDC was 34.6 billion US dollars, while the reserve was 34.6 billion US dollars, including 5.6 billion US dollars in cash and 29 billion US dollars in short-term US government bonds.
Circle has recorded to has a decrease in the USDC circulation.
According to official data, from March 17 to March 24, Circle issued a total of USD 500 million USDC, redeemed USD 2.6 billion, and circulation declined by approximately USD 2.1 billion. As of March 17, the entire circulation of USDC was 34.6 billion US dollars, while the reserve was 34.6 billion US dollars, including 5.6 billion US dollars in cash and 29 billion US dollars in short-term US government bonds.
This decline in circulation might be attributable to a variety of things, including a shift in market trends or a shift in customer tastes. Additionally, it may be worthwhile to investigate alternative solutions to this problem, such as expanded marketing efforts or collaborations with other firms, in order to drive up demand and enhance circulation.
Circle’s problems began with the closure of SVB, where the stablecoin issuer stored US$3.3 billion of its assets. The money is designed to back USDC 1:1 with the dollar. USDC depegged for almost 36 hours, falling as low as 85 cents.
Since Circle took the money out and moved it to other banking partners on March 13, the currency has recovered its value. However, Web3 users have continued to dump this stablecoin. According to CryptoCompare statistics, investors have redeemed $5.76 billion in USDC on Ethereum since March 13, while Circle has issued around $874 million of the stablecoin.
The recent market rise may have played a role. Traders generally hold cash in stablecoins during downturns and then convert them to other cryptocurrencies when prices increase. Nonetheless, Circle has been disproportionately harmed by the recent rise.While Circle stablecoin market capitalization has fallen 17% to US$35.3 billion since the beginning of March, Tether’s has increased by more than US$6 billion.
“The recent concerns about the closure of banking partners appears to have led users to USDT and other stablecoins over USDC,” CryptoCompare analyst Jacob Joseph said. Circle CEO Jeremy Allaire stated last week that all cash kept as reserve for this stablecoin is currently with Bank of New York Mellon.
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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