Circle still relies on interest income despite $32 trillion in USDC transfers

Circle’s dollar-backed stablecoin USDC had recorded $32 trillion in transfer volume through August this year, CryptoSlate reported, citing Coin Metrics. The outlet said annualizing transfer volume relative to circulating supply implies each USDC token moved an average of 741 times. It explained that repeated transactions involving the same USDC have sharply inflated transfer volume, while Circle’s revenue still depends heavily on interest from reserve assets. In the second quarter, 95.2% of revenue and reserve income came from interest on reserve assets. As a result, a key question is how much fee revenue Circle can generate from USDC activity through the public mainnet of its native blockchain Arc, which is scheduled to launch on Sept. 16.