USDC supply shrinks
Capital outflows due to falling credit yields and Fed policies
At the same time USDT strengthens and reaches a new three-month market high
As of October 3, USDC supply amounted to 45.73 billion “coins”. This has fallen by 9bn since 1 July, indicating capital outflows.
In fact, this means that Circle has burned through a marked amount of USDC in three months. The currency has been permanently removed from the blockchain. This happens when a user withdraws their assets into fiat (US dollars).
This is the largest capital outflow in the designated period. Before that, since mid-May, the supply of USDC has mostly increased with small fluctuations. This can be seen on the chart:
The capital outflow can be attributed to lower USDC loan yields and Fed policy. According to LoanScan the figure has only fallen since the start of the year. While the Compound and Aave platforms offered rates of 2.74% and 4.76% respectively at the end of December, they have now fallen to 0.59% and 1.17%.
USDT offerings from Tether, on the other hand, are gradually increasing.
By contrast, USDT’s supply volume from Tether is gradually increasing. In October, its share reached a three-month high of 45.9%.
Who will take the lead? USDC or USDT? We will see in the future. Both have many pluses.