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USDC’s Capital Reserve Exceeds Market Value

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On March 11, according to the latest data released on Circle\’s official website, the current market value of the USDC in circulation is about $43.4 billion, an…

USDCs Capital Reserve Exceeds Market Value

On March 11, according to the latest data released on Circle’s official website, the current market value of the USDC in circulation is about $43.4 billion, and the capital reserve is $43.5 billion, of which the cash reserve is $11.1 billion, accounting for about 25%, and the remaining $33.4 billion is a short-term treasury bond bond portfolio.

Official data of Circle: the total reserves are 43.5 billion dollars, of which $11.1 billion is cash reserves

Analysis based on this information:


The latest news from Circle’s official website reveals that the current market value of the USDC in circulation is about $43.4 billion, which is marginally lower than the capital reserve of $43.5 billion. This indicates that Circle has sufficient backing to maintain the value of USDC in circulation, making it a stable coin.

A stable coin is a cryptocurrency that is pegged to an asset, such as the US dollar, and is designed to avoid fluctuations in value, which are common in other cryptocurrencies. This makes stable coins ideal for use in transactions and settlements since they avoid the risk of significant price changes that can occur in cryptocurrencies such as Bitcoin.

USDC’s high capital reserve, compared to its market value, ensures that Circle can redeem USDC tokens in exchange for real dollars 1:1, making investors have more confidence. Besides, the $33.4 billion short-term treasury bond bond portfolio provides an additional cushion, backing the value of the USDC coin.

The cash reserve of $11.1 billion accounts for about 25% of the capital reserve, which is a good indicator of the USDC’s liquidity, and also a strong point Circle could use for market expansion.

The USDC’s rise in popularity in 2019 and 2020 is attributed to the stability, transparency, and reliability it provided, making it ideal for international and national transactions. Today, the total supply of USDC is over $43 billion, with a daily trading volume of around $1.9 billion.

However, the question of whether USDC is worth investing in is still prominent in the market. While USDC is backed by a 1:1 ratio with the US dollar and seems a safer option compared to other cryptocurrencies, it’s still not regulated by any government agency or central authority, and the price may fluctuate when supply and demand conditions are not in favor.

In conclusion, Circle’s latest update shows the USDC coin is well-backed, making it a reliable and stable coin option in the current market. However, potential investors should remain vigilant about market conditions and regulatory constraints before making significant investments.

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