Circle reported a decrease in USDC stablecoin circulation for the week between January 23 and January 29. The company issued $5.2 billion USDC. It redeemed $8.6 billion USDC. This resulted in a net circulation reduction of $3.4 billion.
Total USDC circulation now stands at $70.2 billion. The significant redemptions suggest a large capital outflow from the stablecoin. This outflow can impact market liquidity and potentially signal decreased demand.
Circle's reserves total $70.3 billion. The company holds these reserves primarily in U.S. Treasury securities and bank deposits.