Circle reported $701.3 million in Q2 revenue, up 6.6% from a year earlier, as USDC onchain transaction volume surged 151% to $14.8 trillion. Adjusted USDC transfer volume through Coin Metrics' August measurement reached $32 trillion, and each dollar of supply turned over 741 times annually.
USDC velocity hits 741
The velocity figure — 741 turns per dollar per year — reflects how quickly USDC moves through the ecosystem. Q2 onchain volume rose to $14.8 trillion, while period-end circulation increased 19% to $73.3 billion. That gap between volume and supply explains the high turnover.
Base vs Ethereum
The chain breakdown shows different usage patterns. On Base, 69% of USDC volume came from DEX liquidity provision and 23% from flash loans. On Ethereum, flash loans dominated at 65%. About 8% of Base volume and 33% of Ethereum volume fell outside identified categories.
Reserve income carries the quarter
Reserve income was $667.7 million, or 95.2% of total revenue. Transaction revenue was just $5.3 million. The reserve income improvement came from a 25.2% increase in average daily USDC circulation, adding $147.4 million, but a 66-basis-point decline in average yields cut $113.9 million. Distribution and transaction costs were $410.4 million, including $324.6 million in Coinbase-related distribution costs. Including other costs, the figure was $412.5 million.
Arc mainnet lands Sept. 16
Circle's blockchain infrastructure, Arc, is scheduled for public mainnet launch on Sept. 16. The company didn't provide further details in the release.
Yield sensitivity
Circle modeled a 100-basis-point move from June's average yield as a sensitivity factor, though the company didn't disclose the resulting impact.
