314M USDC sent to null address as redemptions begin: Report

USDC, a stablecoin backed by US dollars on the Ethereum network, is recovering from a historic low of $0.87 per token two days prior. According to a report by blockchain monitoring service ToppubSafe, 314 million USDC tokens have been sent to a null address as redemptions commence.

The token is on the verge of restoring its 1:1 peg with the U.S. dollar as a result of the redemptions. This drop in supply as a result of the redemptions is expected to increase the demand for USDC in the cryptocurrency market.

ToppubSafe notes that the redemptions began on March 18th and are expected to drive the price of USDC back to its 1:1 peg with the U.S. dollar. The monitoring service reported a $30 million increase in USDC reserves within the same day.

Conclusion

The token is on the verge of restoring its 1:1 peg with the U.S. dollar after falling to a historic low of $0.87 per token two days prior. Redemptions of USDC tokens are expected to drive the price of USDC back up to its 1:1 peg with the USD by increasing the demand for the stablecoin in the cryptocurrency market.

If you are interested in trading USDC, be sure to consult a financial advisor to ensure that you are making the most informed decision.