USDC Burns 65 Million Tokens: Impact on Ethereum and DeFi

Circle’s USDC Treasury conducted a significant action, burning 65 million USDC tokens on the Ethereum blockchain around October 17, 2025. This transaction aimed to manage circulating supply, reducing stablecoin availability for redemption requests that maintain USDC’s consistent 1:1 collateralization. The decision to burn USDC reflects a trend in stablecoin management, with Circle actively employing this strategy for on-chain transparency and reserve stability. 65 million USDC were removed from circulation, according to real-time blockchain data alerts.