Over two billion USDC stablecoins burned in a single day, data shows

Over $2.2 billion worth of USD Coin (USDC) has been burned since the start of this week as redemptions topped $4 billion on Tuesday night.

Some 723 million USDC was burned in a single transaction in the early hours of Asia on Wednesday, according to The blockwhich cited data from Arkham Intelligence.

The data further shows that several other USDC burns occurred across several separate transactions, ranging from $300 million to $600 million. This brought the total burned value of USDC to over $2.2 billion in just over a single day.

Burning refers to the efficient removal of tokens from circulating supply by sending them to an address that is not controlled by any entity. The USDC burns followed a likely reduction in reserve or buyback support.

Meanwhile, USDC net redemptions crossed the $4 billion mark on Tuesday. It came as issuer Circle said over the weekend that it would process all transactions and honor redemptions.

The dollar-pegged stablecoin failed to win back investors after last week’s unpeg. Circle Internet Financial’s stablecoin USDC retreated massively from its expected price of $1 on Friday night after Silicon Valley Bank (SVB), where Circle has parked more than $3.3 billion in treasury assets, has been shut down by regulators.

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