Resistance

USDC

Drops

Avalanche

Circle (<a href="https://yellow.com/asset/usdc" rel="noopener noreferrer nofollow">USDC</a>) redeemed approximately $5.7 billion worth of USDC in the seven days ending December 29 while issuing $4.6 billion.This <a href="https://phemex.com/news/article/usdc-circulation-declines-by-13-billion-amid-regulatory-compliance-46845" rel="noopener noreferrer nofollow">resulted</a> in a net circulation decrease of $1.1 billion.Total USDC circulation now stands at 75.9 billion tokens backed by $76.3 billion in reserves.The decline continues a pattern of supply <a href="https://www.circle.com/transparency" rel="noopener noreferrer nofollow">contraction</a> observed throughout December as institutional redemptions outpaced new issuance.<h2 id="what-happened">What Happened</h2>Circle's reserve composition remains heavily weighted toward short-term U.S. government securities.Approximately $51 billion sits in overnight reverse repurchase agreements.Around $14.6 billion is held in Treasury bills with maturities under three months.The company maintains about $10 billion in deposits at systemically important financial institutions.An additional $800 million <a href="https://coinlaw.io/circle-statistics/" rel="noopener noreferrer nofollow">remains</a> in other bank deposits.Earlier in December, USDC circulation stood at 77.2 billion after a similar $1.3 billion weekly decline from December 11-18.The consecutive weeks of net redemptions mark a shift from mid-year growth when circulation reached 78 billion in early December.Read also:<a href="https://yellow.com/news/why-bitcoin-struggling-under-dollar90000-resistance-signals-extended-consolidation-ahead" rel="noopener noreferrer nofollow">Why Bitcoin Struggling Under $90,000 Resistance Signals Extended Consolidation Ahead</a><h2 id="why-it-matters">Why It Matters</h2>USDC circulation fluctuations reflect institutional cryptocurrency market sentiment and liquidity management strategies.The second-largest stablecoin by market capitalization competes with Tether's<a href="https://yellow.com/asset/usdt" rel="noopener noreferrer nofollow">USDT</a>, which maintains circulation above $137 billion.Circle maintains full dollar backing through highly liquid reserves held separately from operating funds.Monthly third-party attestations from Deloitte verify reserve adequacy.Year-over-year, USDC circulation grew 78% despite December's decline, reaching $73.7 billion at the end of Q3 2025 before late-year fluctuations.Read next:<a href="https://yellow.com/news/anthony-scaramucci-names-solana-avalanche-and-ton-as-top-altcoin-picks-ahead-of-expected-rate-cuts" rel="noopener noreferrer nofollow">Anthony Scaramucci Names Solana, Avalanche And TON As Top Altcoin Picks Ahead Of Expected Rate Cuts</a>

USDC Circulation Drops $1.1 Billion In Late December As Redemptions Surge

Table of Contents

Yellow News

Other articles published on Jan 1, 2026

Solana Spot ETFs Attract $2.29 Million in Fresh Inflows

A Fresh Perspective on Navigating the Dynamic Crypto Terrain

Everything you need to know about how to earn more Binance Alpha points

Bybit Hack Leads to $325 Billion Crypto Loss

Viberate Boosts Music Analytics with VIB Token Platform

Charles Schwab Eyes Bitcoin Spot Trading in 2026

Join our free newsletter for daily crypto updates!