Circle, the company behind the USDC stablecoin, has executed a significant supply adjustment by destroying 55 million USDC tokens on the Ethereum blockchain. This action, valued at approximately $54.99 million, is a standard procedure for the company.
The purpose of the burn is to manage the stablecoin's circulating supply and maintain its dollar peg. According to Circle's CEO, Jeremy Allaire, such activities are a routine part of the company's supply management strategy, particularly in response to customer redemptions.
By reducing the supply, Circle aims to keep the value of USDC stable, preventing potential de-pegging events. While the action can have temporary effects on liquidity and decentralized finance (DeFi) pools, it is a crucial component of ensuring the stablecoin's stability and reliability in the market.
September 2025, Cryptoniteuae