Circle's stock price halved in just 45 days, accompanied by a sharp decline in USDC circulation. Data shows that 75% of USDC flows between exchanges and DeFi protocols, with shrinking TVL and security incidents intensifying market concerns. Although USDC is used in institutional payments and compliance scenarios, its issuance growth remains heavily dependent on DeFi activity, highlighting Circle's vulnerability as a 'DeFi barometer.'
Circle's stock price halved in just 45 days, while the circulating supply of its stablecoin USDC also dropped sharply. On-chain data reveals that as much as 75% of USDC is circulated between centralized exchanges and DeFi protocols. The ongoing contraction in total value locked (TVL), combined with recent security incidents, has amplified market worries about Circle's heavy dependence on the DeFi ecosystem.
Although USDC boasts advantages in institutional payments and regulated settlement scenarios, its actual issuance growth is still closely tied to DeFi activity levels. Circle's stock performance thus acts as a sensitive barometer for the broader crypto market, especially the DeFi sector.
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