USDC Supply Drops $1.5B Amid Surging Transaction Volume

USD Coin's circulating supply has taken a significant hit, decreasing by $1.5 billion from $73.3 billion to $71.8 billion in just five weeks.

The sharp drop occurred over late July and early August, with a single week seeing a contraction of $1 billion.

Despite this contraction, USDC's on-chain transaction volume surged 151% year-over-year in Q2 2026, reaching $14.8 trillion.

Circle, the issuer behind USDC, reported record revenue of $701 million in Q2 2026, primarily driven by reserve income while maintaining full backing of USDC supply with cash and short-term Treasuries.