More than $2 billion in USDC stablecoin burned in one day, data shows

Over $2.2 billion in coins (USDC) has been burnt since the beginning of this week with recoveries topping $4 billion Tuesday night.

About $723 million USD was burned in a single transaction in the early Asian hours on Wednesday, it is reported Blocwhich cited data from Arkham Intelligence.

The data also shows that many other USDC burns have occurred across multiple separate transactions, ranging from $300 million to $600 million. This brought the total value burned of USDC to over $2.2 billion in just over one day.

Burns refers to effectively taking tokens out of circulating supply by sending them to an address that no entity controls. USDC burns were followed by a potential drop in reserve support or retracements.

Meanwhile, net recovery of USDC crossed the $4 billion mark on Tuesday. This came as Circle said over the weekend that it would process all transactions and honor refunds.

The stablecoin pegged to the dollar failed to win back investors after last week’s de-peg. Circle Internet Financial’s USDC stablecoin largely broke away from its $1 price Friday night after regulators shut down Silicon Valley Bank (SVB), where Circle halted more than $3.3 billion in treasury assets.

Correction (March 15, 2023 15:20 UTC): Fixed the title to show $2 billion.

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