USDC Transfer Volume Increased by 49%, Supply Up by 8%

The volume of on-chain transfers of the stablecoin USDC in the third quarter of 2026 reached $13.9 trillion, increasing by 49% compared to the same period last year. Meanwhile, the average volume of USDC in circulation grew by only 8%, to $73.3 billion. The data was published by Circle in its financial report on November 4.

The difference in growth rates shows that the total value of operations increased significantly faster than the supply of the stablecoin. However, the volume of transfers includes the repeated movement of the same funds between wallets, exchanges, and settlement services. Therefore, it cannot be equated to the sum of final payments or new demand for USDC.

At the end of September, the supply of the stablecoin was $73.9 billion, virtually unchanged over the year. This is a separate indicator from the average quarterly value of $73.3 billion.

At the same time, the annual payment turnover rate of the Circle Payments Network (CPN) reached $41.3 billion. This is an estimated figure reflecting the current intensity of operations on an annual basis, not the actual amount of transfers for the completed 12 months. It also cannot be added to the quarterly on-chain turnover of USDC.

How Arc can impact demand for USDC

On September 16, Circle launched the public mainnet Arc, designed for financial operations and settlements with digital assets. The feature of the blockchain is the use of USDC for paying network fees. Companies can make transfers and pay transactions in a single stablecoin.

For payment providers, this simplifies settlement management, but the volume of necessary reserves depends on the movement of funds. If incoming USDC can be immediately used for subsequent payments, a company can handle large turnover with a relatively small balance.

However, if payments need to be pre-funded, the provider will require additional liquidity. Therefore, accelerating settlements may reduce the need for working capital but does not necessarily lead to a reduction in all reserves.

Additionally, transferring existing USDC from other blockchains to Arc increases the supply within the new network without changing the total amount of stablecoins in circulation.

Circle's financial results also reflect differences between turnover and income. In the third quarter, revenue and income from reserves collectively reached $865 million, increasing by 17% year-over-year. Meanwhile, income from reserves directly decreased by 8% to $658 million, as the decline in their yield outweighed the growth in the average supply of USDC.

Additionally, the company recognized $182 million in other income thanks to the pre-sale of the ARC token, which is different from the USDC used for network fees.

Circle also plans to expand its payment infrastructure by acquiring Tazapay. The company provides access to local payment routes in more than 100 markets. The deal is expected to close in 2027 after obtaining the necessary approvals.

To assess further demand for USDC, not only the volumes of transfers are important, but also the change in supply, the regularity of payments, and the balances that companies hold between settlements.