USD Coin sees $1.5B reduction in circulation over 30 days as stablecoin liquidity tightens

USDC’s circulating supply has dropped from $73.3 billion at the end of June to roughly $71.8 billion as of August 6, a decline of approximately $1.5 billion in just over five weeks. About $1 billion of that evaporated in a single seven-day stretch during late July and early August, pointing to a concentrated wave of redemptions rather than a slow bleed. The contraction comes at an interesting time for Circle, which just posted Q2 2026 earnings on August 5 showing $701 million in revenue. The stablecoin issuer is making more money than ever while its product literally shrinks. Supply down, usage up USDC’s circulating supply is still up 19% year-over-year compared to Q2 2025 levels. A $1.5 billion drawdown against a $73 billion base works out to roughly a 2% reduction. USDC processed $14.8 trillion in on-chain transaction volume during Q2 2026, a 151% increase compared to the same quarter last year. That’s roughly equivalent to the annual GDP of the European Union moving through a single stablecoin’s rails in just three months. Where did the money go? The accelerated pace of redemptions in late July and early August, with roughly $1 billion leaving in a single week, does suggest some...