**📉 USDC Circulation Shrinks by $8B Amid Circle's Reserve Adjustments**
Official data reported by *PANews* reveals **Circle** (issuer of USDC) reduced its stablecoin circulation by **$8 billion USD** over the past week (May 8–15, 2024). Here’s the breakdown:
### 🔑 **Key Stats**
- **Issued**: ~$29B
- **Redeemed**: ~$37B USDC
- **Net Circulation Change**: **-$8B**
- **Total Circulation**: **$605B USDC**
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### 💵 **Reserve Breakdown**
Circle’s reserves backing USDC now total **$607B**, structured as:
- **Cash**: $73B (held in custodial accounts)
- **Circle Reserve Fund**: $534B (short-term U.S. Treasuries & assets)
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### 🤔 **What This Means**
- **Market Demand**: Rising redemptions suggest decreased demand for USDC or holders shifting to other stablecoins (e.g., USDT).
- **Reserve Safety**: Circle maintains a slight reserve surplus ($607B vs. $605B USDC in circulation), reinforcing its 1:1 peg.
- **Stablecoin Wars**: USDC continues to trail Tether’s USDT ($110B+ circulation), but remains a dominant DeFi/CeFi liquidity tool.
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