USDC Cumulative Trading Volume Exceeds $100 Trillion, Differences with Actual Payments

Claims have been made that the cumulative on-chain trading volume of USD Coin (USDC) has surpassed $100 trillion; however, this figure is difficult to interpret as actual payment amounts or new capital inflows. According to a report on September 14, Circle announced an on-chain trading volume of $14.8 trillion for the second quarter, but did not officially confirm the cumulative $100 trillion figure. The on-chain trading volume of USDC in the second quarter increased by 151% compared to the same period last year, while the circulating supply rose by 19% to $73.3 billion. According to analysis by CoinMetrics, the adjusted transfer volume of USDC is $32 trillion, indicating that $1 has moved an annualized 741 times. This shows a high frequency of movement that cannot be explained solely by payment demand. A significant portion of the trading volume is related to liquidity provision on Ethereum and Base, flash loans, and rebalancing activities on decentralized exchanges (DEX). The $100 trillion figure indicates that USDC has been utilized as a liquidity infrastructure in the DeFi market, but there is a discrepancy with actual payment flows. CoinMetrics analyzed that 95% of Circle's revenue comes from reserve income. Therefore, when evaluating USDC trading volume, it is essential to consider not only the cumulative total but also the nature of the transactions and the aggregation criteria.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.