USDC Exits Exchanges Amid Market Selloff

Recent data shows that USDC is leaving exchanges behind, with a net outflow of $846 million in one day. This move comes as Coinbase reports a record share of total supply held in its non-trading products, reaching 25.3%.

The exchange reserve of USDC has declined to a 30-day low of $13.47 billion, while the total supply of USDC on Ethereum chains has decreased by 1.55% in one day. This suggests that traders are moving out of crypto positions and into stablecoin holdings held off-exchange.

For Coinbase, this migration expands its yield-earning base, generating revenue from $19 billion worth of USDC reserves held across its products. However, it also reduces the available supply of USDC on exchange order books, which could tighten market liquidity during the current market decline.