Over Two Billion USDC Stablecoin Burnt in Single Day, Data Shows

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Over Two Billion USDC Stablecoin Burnt in Single Day, Data Shows
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Some 723 million USDC were burnt in a single transaction in early Asian hours on Wednesday, ArkhamIntelligence data shows. By shauryamalwa

Over $2.2 billion worth of USD Coin was burnt since the start of this week as redemptions crossed $4 billion on Tuesday night.The BlockData further shows several other USDC burns took over place over multiple separate transactions, ranging from $300 million to $600 million. This brought the total burnt value of USDC to over $2.2 billion in a little over a single day.

Burns refer to effectively taking tokens out of circulating supply by sending them to an address that’s not controlled by any entity. The USDC burns followed a likely reduction in reserve backing or redemptions. Meanwhile, net redemptions of USDC crossed the $4 billion mark on Tuesday. This came as issuer Circle said over the weekend it would process all transactions and honor redemptions.

The dollar-pegged stablecoin has failed to win back investors following last week’s depegging. Circle Internet Financial's USDC stablecoin massively depegged from its intended $1 price on Friday night after Silicon Valley Bank , where Circle parked over $3.3 billion in treasury assets, was shut by regulators.

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