Circle Reduces USDC’s Supply by 4.5 Billion Coins in Less Than a Week
Circle, the co-issuer of the USD Coin (USDC) stablecoin, has redeemed approximately 6.2 billion coins since March 10, according to data from analytical platform Arkham.
However, the company has also issued about 1.66 billion USDC, resulting in a net decrease of 4.5 billion USDC.
This decrease in supply came after the stablecoin lost its peg to the US dollar, following Circle’s admission that part of the $3.3 billion in reserves was held in the Silicon Valley Bank (SVB).
Although Circle quickly assured that they were using corporate funds and external capital to support the USDC, its holders still seemed nervous.