The fact that there are 800 million fewer USDC in circulation doesn’t prove that 800 million have been lost. 👀

Circle reports that in the seven days through October 29, it issued about 10.9 billion USDC and redeemed 11.7 billion. The difference is an 800 million reduction in circulation.

The net balance tells you how much the supply changed. It doesn’t tell you why each person left or what they did with the money afterward. Turning that subtraction into “everyone is fleeing crypto” requires data that table doesn’t provide.

Imagine a company redeeming USDC with the issuer to cover an expense in dollars. That outflow doesn’t describe anyone else’s decision. Selling USDC to another user, on the other hand, only changes who holds it. These are hypothetical examples, not transactions of mine.

To me, before reading fear into a number, you have to separate the movement from its motive. We’re missing data on where those redemptions went and why they happened.

What led you to convert a stablecoin into money in your bank account for the first time?

$USDC #USDCCirculationFallsAbout800MInSevenDays