Analysis

The USDC supply on Ethereum has declined by approximately 20% from its all-time high, currently standing at 40 billion. The decline in USDC supply on Ethereum can be attributed to a variety of factors, including increased competition from other stablecoins, changes in market demand, and shifts in investor sentiment. Despite the decline, USDC remains one of the largest stablecoins on Ethereum and continues to be widely used for a variety of purposes, including trading and as a store of value. The total USDC supply across all blockchains stands at 44 billion, which is 4 billion more than the supply on Ethereum alone. This indicates that USDC is being adopted and used on other blockchain platforms, further expanding its reach and utility. The USDC supply has been declining since the start of 2022, which suggests that there has been a decrease in the demand for USDC or an increase in the redemption of USDC for fiat currency. However, it's important to note that the decline in USDC supply may also be a result of other factors such as changes in the way USDC is being held or used. In terms of holder distribution, Decentralized Autonomous Platforms (DAPs) and Decentralized Finance (DeFi) hold approximately 1/3 of all USDC in circulation. This suggests that USDC is being widely used within the DeFi ecosystem, which has seen tremendous growth in recent years. Additionally, approximately 50% of USDC holders hold less than $10 worth of USDC, while 60% of the supply is held by wallets holding over 10 million USDC. This indicates a high concentration of USDC in the hands of a few large holders, which could potentially introduce risks to the stability of the USDC market.

USDC on Ethereum