Circle USDC, one of the most established stablecoins in the cryptocurrency market, has experienced a marked decline in its circulation in the past seven days. According to official data, $600 million USDC was issued and $1 billion was redeemed by Circle in this time, resulting in a decreased circulation of $400 million. As of May 4, the total circulation of USDC was $30.1 billion, with total reserves of $30.2 billion.

Circle’s reserves, which include a significant amount in short-term US Treasury bonds, may help to assure consumers that their holdings are backed by secure and stable assets. Moreover, blockchain intelligence firm Arkham noted that 140 million USDC had been minted and transferred to Coinbase on behalf of a major investor.

USDC Coin faced difficulty earlier this year when its Silicon Valley Bank holdings failed. However, Circle, the issuer of USDC, has continued to make progress in its development.

In spite of having substantial reserves, USDC’s market value has continued to decrease. The circulating supply of USDT has overtaken the stablecoin market with more than $82.2 million, significantly outpacing USDC’s $30 billion. If the US government decides to take action and provides more information about the stablecoin sector, the market may also improve.

Nevertheless, interest in USDC has continued to drop, signified by the decrease of new addresses to the network over the last month. It is clear that sudden and decisive government action, as well as more assurance from issuers like Circle, are necessary to reignite appeal in the cryptocurrency market.



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