More than $2.2 billion worth of USD Coin (USDC) has been burned since the start of this week, as redemptions passed $4 billion on Tuesday night.
About 723 million USDC were burned in a single transaction in the early Asian hours on Wednesday, as per The blockwhich cited Arkham Intelligence data.
Data further shows that several other USDC burns occurred over several separate transactions ranging from $300 million to $600 million. This brought the total burned value of USDC to over $2.2 billion in just over a single day.
Burns refers to effectively taking tokens out of circulating supply by sending them to an address not controlled by any entity. The USDC burns followed a likely reduction in reserve coverage or redemptions.
Meanwhile, net redemptions of USDC crossed $4 billion on Tuesday. This came as issuer Circle said over the weekend that it would process all transactions and honor redemptions.
The dollar-pegged stablecoin has failed to win back investors after last week’s pegging. Circle Internet Financial’s USDC stablecoin fell massively from its intended $1 price Friday night after Silicon Valley Bank (SVB), where Circle parked over $3.3 billion in government assets, was shut down by regulators.