Circle's Q2 Earnings Disappoint, USDC Circulation Declines Amid Industry Downturn

Circle's second-quarter earnings report revealed mixed results for the stablecoin issuer. The company's total revenue and reserve income fell short of market expectations, coming in at $701 million.

This represents a 7% year-over-year growth, but is below the predicted $717 million.

Circle's adjusted EBITDA was $143 million, an 8% increase from last year.

The net income from continuing operations was $48 million, exceeding market expectations of $43 million and marking a significant improvement from last year's $530 million decline.

The average outstanding supply of USDC in the second quarter was $76.5 billion, a 25% increase year-over-year, but the outstanding supply at quarter-end stood at $73.3 billion - down 4.8% from the previous quarter's end level and representing a significant outflow.

USDC's market share in USD-stablecoins stood at 27%, a 66-basis-point decline year-over-year, amid an overall contraction in industry supply.