Summary
- It was reported that the circulating supply of the US dollar-based USDC decreased by $1.1 billion over the past seven days.
- Circle newly issued $5.4 billion worth of USDC but burned $6.4 billion, reducing the total circulation to $63.9 billion.
- The decrease in stablecoin circulation is interpreted as a sign of reduced investment demand, drawing attention amid the wait-and-see stance in the crypto market.
The circulation of the US dollar-based stablecoin USDC has decreased by $1.1 billion (approximately ₩1,528.6 billion) over the past week.
According to crypto-focused media O’Daily on the 2nd, Circle, the issuer of USDC, minted approximately $5.4 billion worth of new USDC in the past seven days, while redeeming (burning) about $6.4 billion. As a result, the total circulating supply dropped to $63.9 billion (about ₩88,738.9 billion).
Typically, an increase in stablecoin issuance is interpreted as implying greater purchasing power for cryptocurrency, but if the circulating supply shrinks, it is seen as a sign that investment demand has temporarily contracted. As the crypto market enters a correction phase, the decrease in USDC circulation is drawing attention in connection with the market's wait-and-see sentiment.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
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