Circle USDC Continues Circulation Fall After March Crisis
The official data reveals that Circle has issued $600 million worth of USDC and redeemed $1 billion in USDC over the past seven days, resulting in a decrease of approximately $400 million in circulation. As of May 4, the total circulation of USDC amounted to $30.1 billion, while the reserve was $30.2 billion, which consisted of $4.8 billion in cash and $25.4 billion in short-term US treasury bonds.
The fact that USDC has substantial reserves, including a significant amount in short-term US Treasury bonds, may reassure consumers that their investments are backed by secure and dependable assets.
According to the blockchain intelligence firm Arkham, Circle transferred 140 million USDC to Coinbase yesterday on behalf of a significant buyer.
When the Silicon Valley Bank (SVB) holdings of USDC Coin failed, it became the most problematic stablecoin. Despite these challenges, Circle, the issuer of the stablecoin, has been able to profit from its development.
Although USDC has demonstrated its reserves, its market value has continued to decline. As of the time of writing, USDT has been eroding USDC’s market share. Presently, the circulating supply of USDT is leading the stablecoin market with over $82.2 billion, while USDC’s supply of more than $30 billion is still modest, making it the second-largest stablecoin.
If the US government acts promptly and provides more clarification on the stablecoin industry, it could help improve the market conditions.
Nevertheless, interest in USDC has been on the decline, and new addresses have lost interest in the stablecoin, as evidenced by its reduced network expansion over the previous month.
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