USDC circulating supply drops 2% over weekend

The stablecoin’s circulating supply has dropped by over 38% since Jan. 1

article-image

Morozov Alexey/Shutterstock modified by Blockworks

share

Stablecoin USDC saw its circulating supply dip by over 2% over the July 4 weekend.

On June 30, the stablecoin had a circulating supply of $27.9 billion. This amount has dropped to $27.3 billion in less than 48 hours, information on CoinGecko shows. 

In fact, the total supply of USDC has been in decline since the start of the year, decreasing by over 38% since Jan. 1.

USDC is one of the most commonly used stablecoins in the decentralized finance ecosystem, following Tether’s USDT. It is currently deployed natively on 63 different chains with the majority of its supply circulating on Ethereum. 

Like many other stablecoins, USDC itself is overcollateralized, meaning that it is backed by more assets than necessary to maintain its dollar value.

The stablecoin briefly depegged from the dollar in March this year, following the collapse of a slew of crypto banks.

To protect itself from looming liquidity concerns around US Treasury bonds, USDC’s issuer Circle has since made a decision to turn to short-term maturity bonds

The latest attestation report by Deloitte, dated back to May of this year, shows that US treasury securities currently make up $11 billion of USDC’s total backing collateral held in Circle’s reserve fund. 

A remaining $13.1 billion in US Treasury repurchase agreements and a little over $2 billion in cash are also held in the company’s reserve fund. An additional $2 billion in assets are held in regulated financial institutions.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (3).png

Research

Pear Protocol has proven its market fit through its pair-trading infrastructure, sustaining consistent trading activity despite recent headwinds. Its strategic pivot toward Hyperliquid integration represents a major growth catalyst amid industry consolidation. While short-term token unlocks present challenges, current valuations and liquidity conditions may offer compelling opportunities for investors.

article-image

Firms deploying crypto treasury strategies could help build “vibrant” ecosystems within the networks they back, Galaxy’s Steve Kurz says

article-image

Luca Netz says Igloo Inc. is on track to make $50M in revenue in 2025

article-image

Congress distinguishes DeFi from centralized finance, while setting federal standards for stablecoins

article-image

History shows Bitcoin consensus can be messy

article-image

Polymarket is set to re-enter the US market after buying derivatives exchange QCEX

article-image

Paradigm’s Alexander Grieve and Jito Labs CLO Rebecca Rettig broke down the GENIUS bill on the Empire podcast