Connect with us
Active Currencies 14723
Market Cap $2,657,295,637,647.74
Bitcoin Share 51.47%
24h Market Cap Change $4.59

Will USDC succeed amidst Circle’s efforts to revamp? What the data suggests

2min Read

Circle continues to back its stablecoin USDC, with adequate amount of reserves in its treasury. Despite this the faith in its stablecoin, USDC did not perform well.

Will USDC succeed amidst Circle's efforts to revamp? What the data suggests

Share this article

  • Circle maintained strong reserves to back USDC despite market volatility.
  • USDC’s marketcap continued to decline. 

USDC Coin [USDC] was the stablecoin that faced the most issues, as its Silicon Valley Bank (SVB) holdings collapsed. Despite the hurdles faced by USDC, Circle, the issuer of the stablecoin, continued to capitalize on its growth.

High on reserves, low on faith

Circle, over the past week, has redeemed $1.1 billion in USDC, reducing its circulation by about $500 million. Despite this, the stablecoin still had a high circulation of $30.5 billion with ample reserves of $30.7 billion at press time, including $5.2 billion in cash and $25.5 billion in short-term U.S. Treasury bonds.

The strong reserves held by USDC, including a significant amount in short-term U.S. Treasury bonds, may also provide reassurance to users that their holdings are backed by reliable and secure assets.

Source: Circle

Despite showing proof of reserves, USDC’s market cap continued to decline. USDT continued to erode the market share of the former at press time.

Source: Santiment

USDC caught in legal matters

However, new legislation could soon improve the state of USDC and other stablecoins. Circle Chief Strategy Officer and Head of Global Policy, Dante Disparte, recently testified at a hearing entitled “Understanding Stablecoins’ Role in Payments and the Need for Legislation,” held by the House Financial Services Committee’s Subcommittee on Digital Assets, Financial Technology and Inclusion.

Mr. Disparte highlighted that payment stablecoins like USDC can transmit a dollar-denominated form of electronic cash, which is a critical innovation that can advance both the US economic competitiveness and national security interests.

This innovation has the potential to change how people send, spend, save, and secure their money in digital form on any internet-connected device, provided national regulatory frameworks fall into place. He also noted that comprehensive payment stablecoin legislation enacted by Congress is necessary for this to become a reality.

If the U.S government takes swift action and provides more clarity on the stablecoin space, it could improve the state of the market.

However, at press time, interest in USDC continued to decline. New addresses also lost interest in the stablecoin. This was showcased by the declining network growth of the stablecoin over the last month.

Source: Santiment


Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.