Circle’s USDC Redemptions Reaches $2.5 Billion In 24Hrs, Exchange Inflow $7B
Stablecoin issuer Circle’s USD Coin (USDC) redemptions reach over $2.5 billion in the last 24 hours. Investors move away from USDC stablecoin as Silicon Valley Bank (SVB), one of the six banking partners that managed 25% of reserves, was closed by a U.S. regulator and transferred to the U.S. FDIC to protect depositors.
Also Read: Venture Capital Firms Agree To Support Silicon Valley Bank Again
Ki Young Ju, CEO of CryptoQuant, in a series of tweets on March 11 reveals that Circle has burned almost $2.5 billion USDC in the last 24 hours. The total burn after the SVB closure could have reached above $3 billion. He claims it is not a significant amount of money if compared with the historical data.
“Value dropping to zero means major shareholders are selling. No on-chain proof of USDC bank run found for now.”
CryptoQuant data reveals that Circle’s USD redemptions reached over $4.5 billion on February 10 when problems started in the crypto market due to Operation Choke Point 2.0 by Biden Administration to strangle the crypto industry by cutting ties with the banking sector.
Moreover, Ki Young Ju believes the USDC situation is completely different from the TerraUSD (UST) collapse. The Luna Foundation Guard sent billions in BTC to crypto exchanges for issuing Terra (LUNA) to maintain the peg, risking its crash by market makers.
Also Read: Binance Switches To Multiple Stablecoins, Discontinues Auto-Conversion Policy
USDC is the only regulated stablecoin backed by cash reserves backed by traditional financial institutions on public blockchains. Circle’s failure will hamper the plans to launch global financial businesses on public blockchains by U.S. financial institutions.
On-chain data also reveals that exchange inflow has reached over $7 billion in two days. Meanwhile, exchange outflow has also reached nearly $6 billion in two days. The USDC remains depegged at $0.91.
- BlackRock’s Bitcoin ETF Leads ETFs With $3.5B Weekly Inflows as It Eyes $100B in AUM
- MetaMask Launches Hyperliquid Perpetuals In-App, Plans To Integrate Polymarket
- XRP Treasury Holdings Hits $11.5B as Nasdaq-Listed Reliance Global Adds $17M in Fresh Buy
- FOMC Minutes, Jerome Powell Speech: Will Bitcoin Recover or Retrace Further?
- “Meme Coin SZN Is Here,” Says CZ As GIGGLE, 4 Price Skyrocket to All time Highs
- Solana Price Megaphone Points to a Parabolic Move as SOL Treasuries Near $3B
- XRP Price Prediction Amid ETF Approval Roadblock as Analyst Warns of $2.72 Dip
- Binance Coin Price Prediction If It Surpasses Bitcoin Marketcap— Is $3000 Possible in 2025?
- ASTER vs HYPE Price Analysis – Which Perp DEX Token Looks Poised to Dominate Q4 Performance?
- Ethereum Price Could Soar to $6,500 as BlackRock’s ETF Nears $20B Milestone
- Cardano Price Consolidates Below Key Resistance Ahead of ETF Verdict — Is a 50% Rally in Sight?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
