Update
Circle Reduces USDC Supply by $800 Million
Circle's USDC stablecoin supply decreased by $800 million in the week ending October 29, bringing the total circulating supply to $70 billion. This is the second consecutive week of supply reduction, following a $500 million drop in the previous week. Circle issued about $10.9 billion in new USDC during the same period, but redeemed roughly $11.7 billion, leading to a net outflow of $800 million. Circle's reserves, which are more than the circulating supply, remain fully backed, and its revenue depends on the interest earned on these reserves. The company's share price targets have been cut due to concerns about stablecoin demand moving towards alternatives with higher yields.