When redemptions surpassed $4 billion on Tuesday night, over $2.2 billion worth of USDC stablecoin has been burned since the beginning of this week. According to Arkham Intelligence’s reports, on Wednesday morning during the early Asian hours, 723 million USDC was burned in a single transaction.
According to Reports more than Two Billion USDC Stablecoins Burned in Just One Day
Furthermore, data reveals that numerous further USDC burns, with a total value of $300 million to $600 million, occurred over a number of distinct transactions. As a result, in just a little over a day, more than $2.2 billion worth of USDC had been burned. A probable decrease in reserve backing or redemptions came after the burns of USDC.
About Net Redemptions of USDC
On Tuesday, net redemptions of USDC surpassed the $4 billion level. This occurred at the same time that issuer Circle announced over the weekend that it would handle all transactions and honor redemptions.
After the de-pegging last week, the dollar-pegged stablecoin was unable to regain investors’ trust. As Silicon Valley Bank (SVB), where Circle Internet Financial had parked approximately $3.3 billion in treasury assets, was closed by regulators on Friday night, the USDC stablecoin significantly de-pegged from its initial $1 price.
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