USDC Supply Faces Outflow Pressure Following Week of Redemptions

Recent data from Circle reveals significant movements in USDC’s circulating supply over the past seven days through January 8. The stablecoin’s supply dynamics tell an interesting story about market demand and redemption activity.

Week-Long Activity Breakdown

During this seven-day period, Circle minted roughly 5.4 billion USDC tokens while simultaneously processing approximately 5.7 billion USDC in redemptions. The net result was a contraction of about 300 million USDC from active circulation, signaling stronger redemption pressure compared to new issuance.

Current Supply Status

USDC’s total circulating supply now stands at 74.9 billion tokens, reflecting the recent week’s net outflow. Despite the reduction, the stablecoin maintains robust backing with an estimated 75 billion USD in reserves supporting the entire supply.

Reserve Composition & Security

The strength of USDC lies in its diversified reserve structure. Circle’s backing includes:

• Overnight reverse repurchase agreements: approximately 50.7 billion USD
• Short-duration Treasury bills: 13.7 billion USD (maturing in under three months)
• Deposits at major financial institutions: 9.9 billion USD held at systemically important banks
• Additional bank deposits: around 700 million USD

This multi-layered reserve approach ensures that every USDC token maintains full backing, providing users with confidence in the stablecoin’s stability during periods of fluctuating redemption activity.