USDC, the second-largest stablecoin by market size, had its circulating supply drop sharply over the previous week as the market corrected, pushing Bitcoin below $22,000.
On-chain statistics indicated that USDC’s market cap dropped 5% to $41.3 billion in the previous 30 days, with the stablecoin issuer’s supply falling by almost $10 billion over the past year.
Crypto traders panicked as US officials cracked down on the crypto business, causing USDC supply to decline.
On February 10, Etherscan data indicated Coinbase burnt $4.8 billion USDC, despite a comparable influx. Fiat conversion burns USDC tokens.
Crypto writer Wu Blockchain speculated that US regulatory activities caused the USDC supply decline.
Kraken, a crypto exchange, was recently fined by the SEC, while Paxos, a stablecoin producer, was investigated by New York authorities.
Tether and Binance-backed BUSD have outperformed USDC despite market circumstances.
Tether reported a $700 million profit in the fourth quarter of last year, while on-chain statistics revealed a 3% increase in supply to $68.4 billion. At press time, BUSD’s market cap was $16.15 billion, down 0.5% in 30 days.
Binance dominates crypto despite recent scandals.
