According to a tweet posted by the company on Friday, Boston-based financial technology firm Circle has burned a staggering $2.34 billion worth of USD Coin (USDC) in the last 24 hours.
Circle is a major player in the cryptocurrency industry and offers various services, including stablecoin issuance and trading. For example, USDC is a stablecoin pegged to the US dollar and used by traders to move funds between different exchanges.
The company’s tweet revealed that a whopping 70% of the USDC burned, or $1.65 billion, was destroyed in the last 8 hours alone. Nevertheless, the move is seen as a positive development by many in the cryptocurrency industry, suggesting strong demand for the stablecoin.
Circle has not provided further information about the reasons for the USDC burn. However, the move is likely part of Circle’s ongoing efforts to manage the supply of USDC and maintain its peg to the US dollar.
The USDC burn comes amid a period of volatility in the cryptocurrency markets. The world’s largest cryptocurrency, by market cap, has seen significant price swings in recent weeks, falling by around 10%.
Despite the recent price drops, many in the cryptocurrency industry remain bullish on the long-term prospects for digital assets. Circle’s USDC burn is seen as a positive sign for the industry, as it suggests that there is still strong demand for stablecoins despite the market turbulence.
The cryptocurrency market is still in its early stages, and there will likely be many more ups and downs in the coming years. However, the Circle USDC burn is a reminder that many players in the industry are committed to building a strong and sustainable ecosystem for digital assets.
Conclusion
Circle, a major player in the cryptocurrency industry, burned $2.34 billion worth of USDC stablecoin in the last 24 hours, with 70% of that amount being destroyed in the last 8 hours. Despite recent market volatility, the move is seen as a positive development, suggesting strong demand for the stablecoin.
The reasons for the burn are unknown, but it is likely part of Circle’s efforts to manage the supply of USDC and maintain its peg to the US dollar. Despite the ups and downs of the cryptocurrency market, the USDC burn is a reminder that many players are committed to building a strong and sustainable ecosystem for digital assets.
