Circle's USDC Stablecoin Sees Record Growth Despite Revenue Miss

Circle's USDC stablecoin saw significant growth in on-chain transaction volume during the second quarter, increasing by 151% to $14.8 trillion.

However, revenue and reserve income only rose 7% to $701.3 million, missing Wall Street estimates of $717.5 million.

Circle's stock price remained flat after investors weighed an earnings beat against a revenue miss.

The company earns most of its revenue from interest on the reserve assets backing the USDC in circulation.

A 25% increase in average USDC circulation was partly offset by a 66-basis-point decline in Circle's reserve return rate to 3.5%.