Recently, there has been a decrease of 900 million dollars in the circulation of USDC, indicating that users have redeemed (returned) a large amount of USDC instead of buying new USDC. The details are as follows:
Newly issued USDC: 3.2 billion dollars
Redeemed USDC: 4.1 billion dollars
Total decrease: 900 million dollars
Nevertheless, the backing of USDC remains strong:
Total USDC in circulation: 59.8 billion dollars
Total reserves: approximately 60 billion dollars
Cash: 6.7 billion dollars
In Circle Reserve Fund: 53.3 billion dollars
This means that Circle still holds real assets of 1:1 behind each USDC, which is essential for user confidence. The reasons for the decrease in circulation may include reduced demand in the market, significant redemptions by institutional investors, or general market trends.