USDC Stablecoin Issuer Circle Lays Off Staff to Focus on Core Activities

• The market capitalization of USDC has been on a downward trend since July 2022.
• Down from its all-time high of little less than $56 billion, it is now standing at $27 billion.

The effects of 2022’s events continue to hang heavy over the crypto market. While the value of several cryptocurrencies has increased since the beginning of the year, many cryptocurrency businesses continue to struggle. Consequently, layoffs are still commonplace.

Circle, the leading stablecoin issuer, has laid off employees. As a result, it is cutting down on spending on “non-core activities.” The company’s USDC stablecoin is the most notable product.

The firm stated:

“To maintain our strong balance sheet, Circle is redoubling its focus on core business activities and execution.”

Declining Market Cap

Without providing specifics, it referred to the layoffs as a “marginal reduction in headcount.” Circle said in February to the Wall Street Journal that it was planning to increase its workforce size by 15 to 25%, or between 135 and 225 people.

After the collapse of LUNA, investors and traders fled to Circle’s USDC stablecoin last year. Tether (USDT), its primary competitor, saw its market capitalization decline as USDC grew. However, Tether has surpassed its previous market value record, with $83.3 billion USDT now available on the market, and now dominates the stablecoin market.

The market capitalization of USDC has been on a downward trend since July 2022, when it began to move upward. Down from its all-time high of little less than $56 billion, it is now standing at $27 billion.

As of late 2022, Circle had abandoned plans to go public through a SPAC deal. Jeremy Fox-Green, the CFO, claimed that the business was planning another attempt at going public, but not this year. 

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