Usdc Saw Its First Supply Increase Since the Silicon Valley Banking Crisis

Journalist

• Since the beginning of this year, USDC has increased its supply.
• Stablecoin transfers have also increased.

According to data from, there was a net increase in the circulating supply of USD coin (USDC) for the first time since the Silicon Valley Bank (SVB) crisis last year, signaling renewed confidence in the crypto asset. Glassnode.

After a decline in coin supply and market demand in 2023, the stablecoin’s supply has increased by $1.23 billion since 2024. Glassnode data shows that the stablecoin had a circulating supply of 25.86 billion USDC at the time of publication. This has increased by 6% in the last 25 days.

USDC faces a turbulent 2023

USDC’s market share suffered a major blow following the sudden collapse of SVB. Circle, the stablecoin issuer, confirmed on March 11, 2023 that it was unable to remove $3.3 billion of the $40 billion USDC reserves held at SVB.

The stablecoin immediately lost its $1 peg and traded as low as $0.96 on March 12th before finally reaching it again on March 16th.

Many people have exchanged USDC for stablecoins like USDT. The situation continued until the end of the calendar year, although Circle tried to prevent the supply drop by issuing the native coin on Polkadot. [DOT], Basis, Optimism [OP]Near [NEAR] Blockchains.

Glassnode data shows that between March 11 and December 31, 2023, USDC circulating supply will have decreased by 44%.

Source: Glassnode

The amount of stablecoins held by exchanges also fell as supply and market shares collapsed. By December 31, the amount held on exchanges had fallen to 2 billion USDC. This was a 71% decline since March 11th.

The steady increase in USDC supply has resulted in exchanges seeing an increase in USDC. Glassnode data shows that the value of USDC has increased by 5% since the beginning of this year. At the time of publication, there were 2.11 billion USDC on crypto exchanges.

After months of declining transfers following the collapse of SVB, the October bull market led to an increase in USDC transfers. Since then, the stablecoin has seen a 70% increase in daily transfers based on a 30-day moving average.

Source: Glassnode

If the number of transfers per day for a stablecoin increases, it could indicate increased trading or investment in that coin.