USDC circulation shrinks by 700 million tokens: stablecoin “cooling down,” but reserves remain solid

Circle’s latest data shows that this period saw the issuance of approximately 5.1 billion USDC, alongside redemptions of approximately 5.8 billion USDC, resulting in a net circulation decrease of about 700 million tokens.

At present, total USDC circulation is approximately 78 billion tokens, corresponding to reserves of about $78.2 billion, with the reserve structure maintaining a high-quality allocation:

Approximately $47.2 billion: overnight reverse repo US Treasuries
Approximately $19.4 billion: short-term government bonds within 3 months
Approximately $11 billion: deposits from systemically important institutions
Approximately $600 million: other bank deposits

Overall, stablecoin supply shows a partial, period-specific contraction, but the reserve structure remains solid and is tilted toward low-risk assets.

Market liquidity won’t disappear—it’s just redistributed across different cycles.
Real capital changes often happen quietly, not amid the noise. 🚀