- Circle maintained strong reserves to back USDC despite market volatility.
- USDC’s marketcap continued to decline.
USDC Coin [USDC] was the stablecoin that faced the most issues, as its Silicon Valley Bank (SVB) holdings collapsed. Despite the hurdles faced by USDC, Circle, the issuer of the stablecoin, continued to capitalize on its growth.
From April 20 to April 27, Circle issued a total of USD 700 million in USDC, redeemed USD 1.1 billion in USDC, and reduced circulation by about USD 500 million. USDC has a total circulation of $30.5 billion and reserves of $30.7 billion, including $5.2 billion in cash and $25.5…
— Wu Blockchain (@WuBlockchain) April 29, 2023
High on reserves, low on faith
Circle, over the past week, has redeemed $1.1 billion in USDC, reducing its circulation by about $500 million. Despite this, the stablecoin still had a high circulation of $30.5 billion with ample reserves of $30.7 billion at press time, including $5.2 billion in cash and $25.5 billion in short-term U.S. Treasury bonds.
The strong reserves held by USDC, including a significant amount in short-term U.S. Treasury bonds, may also provide reassurance to users that their holdings are backed by reliable and secure assets.
Despite showing proof of reserves, USDC’s market cap continued to decline. USDT continued to erode the market share of the former at press time.
Author: Himalay Patel
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