USDC’s Capitalization Falls by 12%

The capitalization of the stablecoin USD Coin (USDC) grew due to the massive influx of investors after the collapse of the Terra ecosystem in May and June.

Regarding the USDC supply, it topped $56 billion, but it has fallen 12% over the past month. As of October 11, the capitalization of the stablecoin was just over $46 billion.

Binance’s decision to automatically convert user reserves into the stablecoin BUSD dealt a strong blow to the USDC position.

In particular, traders’ funds in USDC, Pax Dollar and TrueUSD were exchanged for Binance’s own stablecoin. Over the past few weeks, the supply of BUSD has increased by 12%, whereas the capitalization of USDC has decreased by 12% over the same time.

From May 9 to June 19, USDC supply increased from $48 billion to $56 billion. Investors began to transfer their capital to this particular coin, because the largest stablecoin.