USDC circulating supply net decreases by 700 million coins! Stablecoin giant is “shrinking liquidity”

Latest data shows that stablecoin issuer Circle recently completed the issuance of approximately 5.1 billion USD Coin, while redeeming approximately 5.8 billion USDC, resulting in an overall net decrease of about 700 million coins in circulation.

Currently, the total USDC circulating supply is approximately 78 billion coins, and its reserve assets total about $78.2 billion. The breakdown is as follows:

About $47.2 billion in overnight reverse repo government bonds
About $19.4 billion in short-term government bonds with maturities of less than 3 months
About $11 billion in deposits at systemically important financial institutions
About $600 million in deposits at other banks

Judging from the structure, USDC’s reserves are still mainly composed of highly liquid, U.S.-treasury-type assets, and overall safety remains stable.

A net decrease in circulating supply often means that the market’s short-term demand for stablecoins has cooled, or that funds are flowing back into other asset categories.

In the crypto market, stablecoins are not “static assets,” but a barometer of capital moving in and out.

When circulation tightens, the market becomes more cautious; when circulation expands, it often signals a rebound in risk appetite.

What matters isn’t the number itself, but whether funds are becoming more conservative or more aggressive.

The market is always changing, but the direction of liquidity often gives the answer before prices do. 🚀