Crypto News – Circle USDC stablecoin’s circulation has been significantly lowered by $200 million as a result of a strategic decision it made.
Circle USDC Stablecoin Supply Falls by $200 Million, Shocking the Market and Traders
This action demonstrates Circle‘s dedication to preserving the reliability and integrity of the widely used digital currency USDC. Circle released a total of 900 million USDC tokens over the course of the last seven days alone, and then it astonishingly bought back 1.1 billion Circle. The cryptocurrency market has taken notice of this move to buyback coins in order to cut down on the circulating supply.
The Main Reason Behind Circle Pursuing This Strategy
The intentional buyback by Circle increases its backing with sizeable reserves while also reducing the supply of Circle, enhancing its stability and dependability as a stablecoin. Ensuring that each Circle token is completely redeemable for its face value in US dollars is a critical component of Circle’s attractiveness, and it is significant to emphasize. This action is consistent with Circle’s dedication to openness and compliance in the world of digital currencies, informing users and other market participants that Circle is supported by tangible assets and that its value is protected.
USDC Amount in Circulation
Circulation of Circle as a whole reached $25.9 billion as of September 7th. It’s impressive that Circle keeps sizable reserves of $26 billion to support the value of USDC. These reserves are made up of $24.3 billion in the Circle Reserve and $1.7 billion in cash, which is stored in separate accounts.