USDC Stablecoin Makes a Comeback with Largest Minting in Seven Days
Circle, the second largest stablecoin by market cap after Tether, has produced significant UDSC following the recent drop in value.
The stablecoin, which is designed to remain pegged to the value of the U.S. dollar, fell to $0.87 on March 11 after it was revealed that Circle had exposure to the failed Silicon Valley Bank (SVB).
Circle has regained investor confidence by minting $407.8 million worth of USDC in the past week, marking the largest amount minted in the past seven days.
Circle minted $407.8 million $USDC about 10 minutes ago
This is the largest USDC minting in the last 7 days
Hourly net change: +$463.8 million#NansenQuery pic.twitter.com/WnHr0lsFyy
— Nansen 🧭 (@nansen_ai) March 13, 2023
The move comes at a time when demand for stablecoins continues to grow as more individuals and institutions look for ways to use digital currencies without exposing themselves to the volatility of other cryptocurrencies like Bitcoin.
Additionally, Circle burned $314 million worth of USDC, which can be seen as a way to maintain the coin’s stability and ensure that it remains pegged to the U.S. dollar.
Circle just burned $314 million $USDC 10 mins ago pic.twitter.com/XIbNDnlZJV
— Nansen 🧭 (@nansen_ai) March 13, 2023
Burning coins effectively reduces the supply of USDC in circulation, which can help increase the remaining coins’ value.
READ MORE: Ripple CEO Reveals Impact of Silicon Valley Bank Closure on His Company
Circle joined other companies, calling on the U.S. government to step in and protect SVB. The Federal Reserve Board confirmed that the Federal Deposit Insurance Corporation would protect depositors.
Overall, Circle’s actions demonstrate the ongoing challenges facing stablecoins in the cryptocurrency market. While they offer a more stable alternative to other digital currencies, they are still subject to the same risks as traditional financial instruments, including exposure to the risk of failed banks and other economic shocks.
However, with the growing demand for stablecoins, we will likely see more companies like Circle stepping up to provide solutions that offer stability and flexibility for users.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
