USDC’s Circulation Surges by $800 Million, Rebounds to $26 Billion After Recent Dip
In Brief
USDC circulation surged from 25.2 billion on October 5th to $26 billion on October 9th, after a net decrease of 300 million in the preceding week.
Recent data from Circle’s official website revealed a fluctuation in USDC’s circulation over the past week. From September 29 to October 5, Circle minted about 1.4 billion USDC and redeemed roughly 1.7 billion USDC, resulting in a net decrease of close to 300 million $USDC.
However, by October 5 the circulating supply of USDC stood at 25.2 billion, matching reserve funds of $25.2 billion. Fast forward to today, the circulation has bounced back to $26 billion.
The recent shifts in USDC’s circulation highlight the dynamics of stablecoin markets. They also show the demand for such assets. Importantly, $USDC is a pegged currency. Its value is backed by a reserve. This backing ensures stability, even with market fluctuations.
⚠ IPOR USDC has dropped by 52 bps to 5.69%
— IPOR Rates (@ipor_rates) October 9, 2023
AAVE USDC utilization: 90%
Compound USDC utilization: 81%
📈 Get updated and historical rates info at https://t.co/q6qtDNEoGC
Previous USDC Developments
Recently, Circle expanded the deployment of its renowned stablecoin, $USDC, by integrating it natively on Layer 2 blockchains OP Mainnet and Base, ensuring faster and more efficient transactions. The move reaffirms USDC’s commitment to providing a seamless method for global money transfers.
In March 2023, as the US banking crisis unfolded, Circle promptly responded by transferring its SVB funds to the Bank of New York Mellon, effectively mitigating potential risks. This move highlighted USDC’s resilience and Circle’s proactive approach during challenging times.
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About The Author
Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
