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Coin Metrics attributes the bulk of Circle's $32 trillion in USDC transfer volume to market plumbing such as exchange and bridge routing, while reserve interest supplied 95.2% of second-quarter revenue. That makes Circle a leveraged play on short-term rates rather than on payment adoption: every Fed cut compresses the yield earned on T-bill reserves, and only faster USDC supply growth can offset a lower reserve yield. Watch the trajectory of non-interest revenue share and USDC circulating supply, since flat supply plus falling front-end yields would pressure CRCL earnings and, by extension, the revenue-share economics flowing to distribution partners like Coinbase.
As a Research signal, watch whether it changes price action, volatility, or flows around CRCL, USDC.
Original Source: CryptoSlate
This page is market information analysis, not investment advice.
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