TLDR
USDC and Ethena USDe show clear net redemptions recently.
- USD Coin (USDC): circulation fell by about $1.3 billion in the seven days ending 18 Dec per a market update.
- Ethena USDe (USDe): investors redeemed roughly $8 billion since the October crash, halving TVL, per an analysis.
- Context: despite these, total stablecoin market cap hit a record $310 billion per a roundup, suggesting redemptions are concentrated, not broad.
Deep Dive
1. USDC Redemptions
USDC saw net redemptions last week, with about $6.0 billion redeemed against $4.7 billion issued (net ?$1.3 billion), per the post above.
- The same update puts USDC circulation near 77.2 billion, backed by short?term Treasuries, reverse repos, and bank deposits, indicating robust reserves even as net supply dipped in the period noted (see the post above for composition).
- Parallel signals show traders have been risk?off, with stablecoins moving off exchanges (Binance saw nearly $1.9 billion net outflows of stablecoins over 30 days), reinforcing defensive positioning per a market note.
A short, dated net decline in USDC supply points to near?term caution or liquidity rotation. Tracking issuance vs. redemption helps gauge risk appetite.
2. USDe Redemptions
Ethenas USDe faced sustained outflows since the 10 Oct crash, with around $8 billion redeemed and TVL halving from $14.8B to $7.4B, per the analysis above.
- A detailed recap confirms USDes market cap fell from $14.7B to $6.4B over two months, with a brief depeg on Binance driven by an internal oracle issue, not collateral failure, per a report.
- Outflows were concentrated in USDe versus peers, while alternative yield?bearing stablecoins saw inflows (see the analysis above).
Synthetic or yield?bearing stablecoins can face heavier redemptions during deleveraging. Structure and peg mechanics matter when stress hits.
3. Market Context
Redemptions are not uniform across all stablecoins. Aggregate stablecoin market cap reached an all?time high of about $310B, led by USDT, per the roundup above, indicating most flows remain net positive overall.
- The divergence suggests idiosyncratic drivers: product structure (USDe) and short?term liquidity positioning (USDC).
- For a broader lens, monitor aggregate supply and exchange reserves alongside issuance/redemption prints (see the market note above).
Treat recent redemptions as specific to certain stablecoins. The broader stablecoin base still expands, so watch individual issuer updates rather than assuming a sector?wide contraction.
Conclusion
USDC and USDe are the notable stablecoins with recent net redemptions: USDCs week saw a $1.3B net decline, and USDe has faced sustained outflows since October. The wider stablecoin market, however, continues to expand toward record levels. If your goal is to track liquidity and risk appetite, follow issuer reports on weekly issuance vs. redemptions and exchange stablecoin reserves to spot shifts early.
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