Circle's stock price has halved in just 45 days, accompanied by a sharp decline in USDC circulation. This reflects the company's deep integration with the DeFi ecosystem: 75% of USDC flows through exchanges and DeFi protocols. The contraction in TVL and recurring security incidents have exacerbated market concerns. Although USDC is used in institutional payments and compliance scenarios, its issuance growth remains heavily dependent on DeFi activity.
Stock Halving and USDC Circulation Drop
Circle's stock has lost half its value in 45 days, while USDC's circulating supply has significantly decreased. This is not an isolated event but closely tied to the overall downturn in the DeFi market. Analysts note that Circle's valuation and USDC issuance have become a direct reflection of DeFi ecosystem vibrancy.
Deep Interconnection with DeFi
Data shows that 75% of USDC circulates on centralized exchanges and within DeFi protocols. When the total value locked (TVL) in DeFi shrinks, compounded by several security incidents, demand and circulation of USDC come under pressure. Although Circle has made inroads into institutional payments and other compliant use cases, the actual growth of USDC supply still heavily relies on DeFi activity. The rapid decline in Circle's stock price is a microcosm of the market repricing DeFi risk.
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