Circle's stock price halved within 45 days, accompanied by a sharp drop in USDC circulation, revealing the stablecoin issuer's deep ties to the DeFi ecosystem. 75% of USDC circulates on exchanges and DeFi protocols, while shrinking TVL and security incidents amplify market concerns. Although USDC maintains use cases in institutional payments and compliant settlement, its issuance growth remains heavily reliant on DeFi activity, a risk now being repriced by the market.
According to MarsBit, Circle's stock price halved in just 45 days, while USDC circulation also saw a significant decline. This phenomenon highlights the structural risk of Circle's deep dependency on the DeFi ecosystem.
Data shows that 75% of USDC circulates on centralized exchanges and DeFi protocols. As total value locked (TVL) in DeFi continues to shrink, compounded by multiple security incidents, market concerns over USDC liquidity and the issuer's risk resilience have intensified. Despite USDC's presence in institutional payments and compliant settlement scenarios, its actual issuance growth remains heavily dependent on DeFi activity—when DeFi cools, demand for USDC follows suit.
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