Circle redeems roughly $11.7 billion in USDC as supply slips to $70 billion

Circle redeemed roughly $11.7 billion in USDC, with the stablecoin's circulating supply slipping to $70 billion, a decline that could pressure the issuer's revenue model since reduced circulation limits interest income earned on reserve assets backing the token. The redemptions reflect shifting demand for the dollar-pegged token, which competes with Tether's USDT in the dollar-backed stablecoin market. Because Circle's core business relies on generating yield from the reserves held against USDC in circulation, sustained outflows would directly affect earnings and shareholder confidence. Market watchers will be monitoring whether the supply contraction continues, what is driving redemptions, and whether Circle can stabilize or reverse the trend in USDC circulation.