According to data from the analytical platform CryptoCompare, users are actively redeeming USD Coin (USDC) to Circle, with a total of $6 billion worth of stablecoins exchanged for fiat.
Although Circle, the issuer of USDC, claims to fulfill all withdrawal requests promptly, representatives from the platform assure that the redemption process is very fast.
On March 20, USDC worth $9 million was issued on the Ethereum blockchain, but users redeemed these stablecoins for a whopping $738.6 million on the same day, as reported by analysts.
It has been discovered that in March, USDC burned around $12.2 billion in stablecoins while issuing half as many tokens on the Ethereum network.
The US Silicon Valley Bank’s recent collapse caused market turmoil, leading to USDC stablecoin briefly losing its dollar peg.
However, after Circle reported holding $3.3 billion in SVB-related reserves, USDC quickly recovered from its fall to $0.89.
Circle has announced that users redeemed $3 billion worth of USDC between March 13 and March 15, indicating continued interest in this stablecoin.
Despite the ongoing redemption of USDC, Circle maintains that it satisfies all withdrawal requests from users promptly.