🔥 USDC Treasury Burns 78M Tokens
USDC Treasury removes over 78M USDC from circulation on Ethereum.
A move aimed at supply adjustment. 🔥💵
DEEPER CONTEXT & TRENDS:
· Why This Happens: The USDC Treasury contract burns tokens when Circle processes fiat redemption requests from authorized partners.
· Demand Indicator: Sustained net burns over weeks can indicate capital moving off-chain (crypto -> fiat) or a shift to other stablecoins.
· Compare to USDT: Watch if USDT supply is increasing simultaneously, which would signal a market preference shift.
KEY METRICS TO WATCH NOW:
1. Total USDC Supply (Ethereum): Is this a one-off or part of a downtrend?
2. USDT Supply Change: Is Tether minting while Circle burns? (Indicates market share shift).
3. DEX Pool Balances: USDC/ETH or USDC/USDT liquidity pool sizes.
4. Circle's Attestation Reports: Next report will confirm reserve reduction matched the burn.
