USDC reserve declines significantly within seven days

GasGuzzler · 2026-01-30T17:15:44+00:00

Circle reported a significant decline in USDC circulation, with a net outflow of about 1.4 billion coins between January 14-21. Despite this, USDC remains strong in the market with a total supply of 74.4 billion coins, now reduced to 70.3 billion. Circle’s reserves are diversified, ensuring security and liquidity, which supports USDC's reliability amidst market shifts.

GasGuzzler

2026-01-30 17:15:44

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Circle has reported a remarkable decline in the USDC circulation over a seven-day period. According to PANews, between January 14 and 21, a significant movement occurred in the world’s leading stablecoin: the company issued approximately 4.8 billion USDC, while around 6.2 billion USDC were withdrawn simultaneously. This dynamic resulted in a net outflow of approximately 1.4 billion coins in circulation during these seven days.

Changes in USDC Circulation and Current Holdings

Despite this reduction over seven days, USDC remains a massive stablecoin in the market. The total circulation is estimated at 74.4 billion coins. This represents a significant position, fully backed by reserves of about 74.5 billion USD. However, current data from January 30 shows that circulation has now decreased to approximately 70.3 billion coins, highlighting ongoing dynamics in the USDC market. The seven-day trend thus continues.

Composition of Circle’s Reserves

Circle’s reserves follow a diversified structure that ensures safety and liquidity. Of the available reserves, about 47.8 billion USD are allocated to overnight repurchase agreements, a proven liquidity management tool. Additionally, Circle holds approximately 16 billion USD in short-term US Treasury bonds with maturities under three months. Furthermore, 9.9 billion USD are invested in systemically important financial institutions, complemented by around 800 million USD in other bank deposits. This distribution underscores a conservative approach to safeguarding the USDC value.

Implications of the Seven-Day Dynamic

The decline over seven days signals shifts in market dynamics, whether through reallocations between different stablecoins or changes in user behavior. Nonetheless, USDC remains a trustworthy stablecoin in the ecosystem due to its extensive reserves and transparent reporting by Circle.

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