USDC supply fell $1.7B in seven days to about $77.5B, while total stablecoin supply stayed near $305B to $310B.
USDC supply fell by $1.7 billion over the past seven days, based on Artemis data. The decline came after a strong rise from February into late March.
As a result, traders are watching whether stablecoin liquidity is cooling again. For now, USDC market cap remains far above its February low, but momentum has weakened.
USDC Market Cap Pulls Back After a Strong Recovery
USDC market cap tracks the amount of USDC in circulation, not the token’s price.
Therefore, it is often used as a measure of crypto liquidity. When supply rises, more dollar-linked capital is usually available inside crypto markets.
According to Artemis, “USDC total supply” fell by $1.7 billion in seven days. That shift suggests some recent capital has moved out of USDC.
Even so, the broader recovery from February remains in place for now.
From early February to late March, USDC supply climbed from about $70 billion to nearly $80 billion.
That move marked a clear recovery after earlier weakness. However, the latest drop has pushed market cap back toward $77.5 billion.
Technical Signals Show Short Term Pressure
The daily chart now shows USDC market cap testing a near term support area. That first zone sits between $77.3 billion and $77.0 billion.
If that range fails, the next support appears near $76.0 billion to $75.5 billion.
Meanwhile, resistance remains close overhead after the recent pullback. The first barrier stands between $78.0 billion and $78.3 billion.
Above that, the main resistance zone remains near $79.0 billion to $80.0 billion.
Momentum readings also point to softer near term conditions. The daily RSI is near 46, which is below the 50 midpoint.
That reading does not show deep weakness, yet it does suggest fading strength.
USDC supply cools as momentum weakens near support Source: TradingView.The MACD also shows a weaker short term picture. The MACD line sits below the signal line, and the histogram remains negative.
Together, those signals suggest the March rebound has lost pace.
Still, the chart does not confirm a major breakdown at this stage. If USDC market cap holds above $77 billion, sideways movement may continue.
On the other hand, a break below that level may open room toward $76 billion.
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Broader Stablecoin Supply Still Stays Near Cycle Highs
The wider stablecoin market remains much stronger than one token alone may suggest.
Total stablecoin supply is near $305 billion to $310 billion. That level sits close to a new cycle high on the long term chart.
The market has moved through three phases since 2021. Supply rose into early 2022, then fell into late 2023. After that, a new expansion phase started in early 2024 and continued through 2025.
USDT remains the largest driver of that broader growth. At the same time, USDC has also recovered well from its 2023 lows. Smaller tokens, including DAI, USDe, USDS, and PYUSD, have also been added to supply.
Stablecoin supply nears record highs as USDT leads source: Artemis.So, the latest USDC drop comes inside a much larger growth trend. That means overall stablecoin liquidity still looks firm, even as USDC cools.
In turn, market participants are comparing token level changes with total supply trends.
For now, the broader stablecoin structure remains steady above the $300 billion area.
Yet the recent USDC decline has introduced short term caution. As a result, traders are now watching whether support holds or another supply drop follows.
Source: https://www.livebitcoinnews.com/usdc-supply-drops-1-7b-in-7-days-as-crypto-liquidity-tightens/
