USDC could be on the road to recovery but not without these obstacles

ambcrypto.com:

The stablecoin sector was impacted severely after the Silicon Valley Bank (SVB) Saga. Circle, the issuer of theUSDC stablecoin was impacted the most as some of their holdings were with the SVB. However, the revenue generated through USDC might aid Circle navigate through the market volatility.

According to Messari’s data, despite USDC’s declining market cap, Circle was able to generate more than $300 million from interest on its treasury bills. Treasury bills are short-term debt securities issued by governments.

Companies such as Circle generate revenue through their yields by investing in them as they offer a low-risk return on their investment.

Source: Messari

According to Circle’s Examination Report, the firm was holding $10.59 billion worth of reserve assets as well.

In addition, Circle generated revenue from USDC transactions, subscriptions, and services. Transactions revenue primarily came from Bitcoin [BTC] and Ethereum [ETH], which collectively accounted for 29% and 35% of the overall revenue. When combined, Circle generated a net revenue of $314 million from all these revenue sources.

At press time, there was $32.6 billion worth of USDC in circulation. This was backed by $4.46 billion worth of cash at reserve banks and $28.4 billion in short-dated U.S treasuries.

Source: Circle.com

Despite the volatility faced by USDC due to the collapse of SVB, the transfer volume of USDC remained unaffected. According to Dune Analytics’ data, USDC was responsible for 62.9% of all stablecoin volume. However, the number of addresses using USDC started to decline which could put its dominance in a tight spot.

Furthermore, the chart given below points out that USDT outperformed USDC in this area.

Source: Dune Analytics

In terms of network