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

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.

 

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