Competing with Tether (USDT), USD Coin (USDC) Started to Reduce Supply!

According to incoming data, stablecoin USD Coin (USDC) Its total supply has shrunk from $55.55 billion to $46.57 billion in the last 90 days.

Circle Reduces USD Coin Supply by $9 Billion in Last Three Months

According to the data in question, this is USDC issuing CircleIt means that .

This is the highest volume of USDC destroyed by Circle in a 90-day period. In addition, this data was released in early October. Tron It also includes the $1 billion removed the same day from the stablecoin supply on its network.

Circle burns USDC when a user uses the underlying fiat currency that supports the stablecoin, usually the US dollar.

The company does this by sending the used tokens to the burn address and permanently deleting these tokens from the Blockchain record.

This increase in USDC burn DeFi It coincided with a marked decline in the yield offered to stablecoin lenders by their platform.

Data from LoanScan, compound and aaveIt shows that the USDC lending rate in FX has dropped more than 70% since the beginning of the year.

This decline pushed DeFi yields below those offered in the traditional financial market, especially as the US Federal Reserve raised the interest rate from 2.50% to 3.25% last month.

As the USDC supply drops, Tether (USDT) supply increased during the same period. The circulating supply of USDT has increased by more than $2 billion since the beginning of July. Tether’s dominance of the stablecoin market also rose to a three-month high of 45.9%.

Circle recently announced its plans to improve users’ ability to transact on multiple chains in USDC.

The company is preparing to launch a protocol that will allow users to transfer USDC between supported networks.

*Not investment advice.