USDC redemptions exceeded issuance by about $800 million this week. Supply is indeed contracting, but where the funds went remains unclear.
Circle’s 7-day figures through October 29: about $10.9 billion issued and about $11.7 billion redeemed, both rounded.
Redeeming for dollars and switching to other stablecoins have different implications for the market; the original page does not say which was predominant. Treating this gap as a withdrawal of funds from the entire crypto market goes too far. To assess whether capital is flowing out, we need to also check the supply of other stablecoins and where the funds went; assessing a depeg also requires checking trading prices and whether redemptions are being honored.
Circle’s 7-day figures through October 29: about $10.9 billion issued and about $11.7 billion redeemed, both rounded.
Redeeming for dollars and switching to other stablecoins have different implications for the market; the original page does not say which was predominant. Treating this gap as a withdrawal of funds from the entire crypto market goes too far. To assess whether capital is flowing out, we need to also check the supply of other stablecoins and where the funds went; assessing a depeg also requires checking trading prices and whether redemptions are being honored.
