Stablecoin

Impact

USDC

<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/circle-adjusts-usdc-withdrawal-fees-to-impact-market-appeal/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Circle Adjusts USDC Withdrawal Fees to Impact Market Appeal</a><br></p>
<p style="text-align: justify">Stablecoin provider Circle has raised USDC withdrawal fees for the second time this year. According to Bloomberg, users wishing to make expedited withdrawals will incur additional charges for transactions exceeding $2 million daily.</p>
<h2 style="text-align: justify" id="updated-fee-structure">Updated Fee Structure</h2>
<p style="text-align: justify">Circle continues to implement the tiered withdrawal options introduced in February. Under the standard withdrawal plan, a fee of 0.1% applies to withdrawals exceeding $15 million.</p>
<p style="text-align: justify">While standard withdrawals are processed almost instantly, basic withdrawals can take up to two business days to complete. Circle has enrolled all customers in the standard plan, requiring manual approval for transitions to the basic plan.</p>
<h2 style="text-align: justify" id="new-fee-rates">New Fee Rates</h2>
<p style="text-align: justify">With the updated fees, withdrawals of $2 million to $5 million will incur a fee of 0.03%, and those between $5 million and $15 million will face a fee of 0.06%. Sources speaking to Bloomberg expressed concern that these newly added fees could diminish USDC’s attractiveness in trading.</p>
<p style="text-align: justify">In the last 30 days, Circle earned $136 million in fee revenue, positioning itself among the highest-earning on-chain businesses in the industry. In contrast, competitor <a href="https://en.coin-turk.com/tether-and-bitfinex-take-a-step-back-providing-transparency-and-security/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Tether</a> generated $400 million during the same period, charging a fixed fee of 0.1% on withdrawals exceeding $100,000.</p>
<h2 style="text-align: justify" id="market-share-struggle">Market Share Struggle</h2>
<p style="text-align: justify">USDC’s market share has decreased from 31% in February to 20% now. This decline is associated with traditional financial players entering the stablecoin market and the rise of alternative stablecoin options. During the same period, Tether increased its market share from 52% to 70%.</p>
<p style="text-align: justify">The new fees highlight the challenges USDC faces in a highly competitive market. Rising fees may lead some users to consider alternative stablecoins.</p>
<p>The post <a href="https://en.coin-turk.com/circle-adjusts-usdc-withdrawal-fees-to-impact-market-appeal/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Circle Adjusts USDC Withdrawal Fees to Impact Market Appeal</a> appeared first on <a href="https://en.coin-turk.com" data-wpel-link="internal" rel="noopener noreferrer nofollow">COINTURK NEWS</a>.</p>

Circle Adjusts USDC Withdrawal Fees to Impact Market Appeal

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