USDC Circulation Drops by $800M in Past Week Amid Higher Redemptions

In Brief:

Circle issued $2.9B and redeemed $3.7B in USDC over the past 7 days, reducing net circulation by $800M.

Total USDC in circulation now stands at $60.5 billion, backed by $60.7 billion in reserves.

According to official data from Circle, USDC's circulating supply has dropped by approximately $800 million in the past week, ending May 15. This follows $2.9 billion in new USDC issuance and $3.7 billion in redemptions during the same period.

The total USDC circulation now stands at $60.5 billion, backed by $60.7 billion in reserves. These reserves include about $7.3 billion in cash and $53.4 billion held in the Circle Reserve Fund, ensuring full backing of the stablecoin.

The decline in circulation comes amid broader market shifts and could reflect repositioning by institutional traders, profit-taking, or reduced demand for USDC in DeFi and trading applications.

Circle continues to emphasize transparency around its reserve holdings and publishes regular attestations to ensure market confidence in USDC’s 1:1 dollar peg.

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