Circle’s USDC Stablecoin Takes a $1 Billion Hit in Just Seven Days

USDC, the second-largest stablecoin by market cap, has seen a sharp drop in its circulating supply over the past week as the market experienced a correction, which pushed the price of Bitcoin below $22,000.

On-chain data showed that USDC’s market cap decreased by around 5% in the last 30 days to $41.3 billion, with the stablecoin issuer’s supply shrinking by over $10 billion over the past year.

Source: Glassnode

Panic Over Regulatory Crackdown Sweeps Crypto Market

The drop in USDC’s supply can be attributed to the recent enforcement action taken by US regulators against the crypto industry, which caused panic among crypto traders.

On-chain data from Etherscan showed that Coinbase burned $4.8 billion worth of USDC on February 10, though the exchange reportedly saw a similar inflow during the same period. USDC tokens are burned when users convert their holdings into fiat.

Source: PeckShield

Crypto reporter Wu Blockchain commented that the drop in USDC’s supply might be related to the panic caused by US regulatory actions.

The US Securities and Exchange Commission recently filed an enforcement action against the crypto exchange Kraken, while reports emerged that another stablecoin issuer, Paxos, was under investigation by New York authorities.

Stablecoin Rivalries Heat Up

Despite the current market conditions, rival stablecoin issuers like Tether and Binance-backed BUSD seem to have performed better than USDC.

On-chain data showed that Tether’s supply rose by 3% to $68.4 billion over the last 30 days, with the company reporting a profit of $700 million during the fourth quarter of last year. Meanwhile, BUSD’s market cap lost only 0.5% in the last 30 days to hit $16.15 billion as of press time.

Source: Glassnode

Despite recent controversies surrounding Binance, the exchange remains dominant in the crypto space.


BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.

Bookmark (0)

Related Posts

Shiba Inu (SHIB) Rebound Looks Unlikely Despite Shibarium L2 Launch

SHIB Price has retraced 13% since the start of March. 
Shiba Inu whales are trading less. 
On-chain Data reveals a large SHIB sell-wall around the $0.000011 mark, signaling another potential downswing.

Bookmark (0)

Polygon (MATIC) Holds the $1 Support but Could Bearish Whales Trigger Lower Prices?

Polygon (MATIC) is trading below $1.20 for the second week running. 
Crypto whales have offloaded $30 million worth of MATIC in the past week. 
$1 support may not hold much longer.

Bookmark (0)

Metaverse Fashion: The Wave of the Digital Future?

Interest in the Metaverse has dropped approximately 85% since its peak.
Big brands like Nike, Adidas, Balenciaga, and Gucci are still paying attention.
The industry believes that metaverse fashion and digital clothing are key to a sustainable future.

Bookmark (0)

Crypto Interest in Singapore Remains Strong Despite Layoffs and MAS Restrictions

Despite high-profile bankruptcies, survey reveals that Singaporeans remain invested in cryptocurrencies.
Singapore has suffered a great deal of crypto industry layoffs between February 2022 and 2023.
40% of Singaporean investors are expected to invest in cryptocurrencies over the next 12 months.

Bookmark (0)

Will the Launch of USDB Make Stablecoins Stable Again?

USDB, a Bitcoin-backed stablecoin started its beta testing phase today.
It uses unique approach of shorting Bitcoin through an inverse perpetual swap.
Will it bring back the trust in stablecoins?

Bookmark (0)

Ethereum (ETH) Price Approaches Yearly High – Is $2,000 Next Target?

Ethereum (ETH) price broke out from the $1,685 resistance area.
It broke out from a long-term descending resistance line.
The weekly and daily RSI are bullish.

Bookmark (0)

Leave a Reply

Your email address will not be published. Required fields are marked *