Circle’s USDC Redemptions Reaches $2.5 Billion In 24Hrs, Exchange Inflow $7B

USDC Redemptions. Source: CryptoQuant

Moreover, Ki Young Ju believes the USDC situation is completely different from the TerraUSD (UST) collapse. The Luna Foundation Guard sent billions in BTC to crypto exchanges for issuing Terra (LUNA) to maintain the peg, risking its crash by market makers.

Also Read: Binance Switches To Multiple Stablecoins, Discontinues Auto-Conversion Policy

USDC is the only regulated stablecoin backed by cash reserves backed by traditional financial institutions on public blockchains. Circle’s failure will hamper the plans to launch global financial businesses on public blockchains by U.S. financial institutions.

On-chain data also reveals that exchange inflow has reached over $7 billion in two days. Meanwhile, exchange outflow has also reached nearly $6 billion in two days. The USDC remains depegged at $0.91.

USD Coin Exchange Inflow (Total)
USD Coin Exchange Inflow (Total). Source: CryptoQuant