On Thursday, May 8, 2025, the price of USD Coin ($USDC ) experienced a slight decline below its peg value of $1, reflecting increased market pressure on one of the largest stablecoins in the world. Although this decline is relatively small, it raises concerns among investors and crypto market participants regarding the stability and trust in USDC.

Factors Influencing the Decline of USDC

• Increased Supply of USDC by Circle

Since the beginning of 2025, Circle has minted more than 8.75 billion USDC, increasing the total supply to around 35.75 billion tokens. This surge in supply could put pressure on the value of USDC if not matched by corresponding demand, potentially causing an imbalance between supply and demand in the market.