Circle, the stablecoin provider for USDC, has raised its withdrawal fees for the second time this year. According to Bloomberg, users looking to make expedited withdrawals over $2 million daily will face additional charges.
Updated Fee Structure
The tiered withdrawal options introduced by Circle in February remain in place. Under the standard plan, a fee of 0.1% applies to withdrawals over $15 million. While standard withdrawals are processed nearly instantly, basic withdrawals can take up to two business days. Circle has registered all customers under the standard plan, with a manual approval process required for those opting into the basic plan.
New Fee Rates
The updated fees apply to standard withdrawals as follows: 0.03% for amounts between $2 million and $5 million, and 0.06% for amounts between $5 million and $15 million. Sources speaking to Bloomberg raised concerns that these added fees, introduced in September, could reduce USDC’s appeal in transactions.
Circle recently reported earning $136 million in fee revenue over the past 30 days, ranking it among the highest-earning on-chain businesses. Rival Tether earned $400 million in the same period, applying a flat 0.1% fee on withdrawals over $100,000.
Market Share Battle
USDC’s market share, which was at 31% in February, has now dropped to 20%. This decline correlates with traditional finance players entering the stablecoin market and an increase in alternative stablecoin options. Meanwhile, Tether (USDT) has grown its market share from 52% to 70%. Circle’s new fees highlight the challenges USDC faces in a competitive market. As fees rise, some users may be prompted to explore alternative stablecoins.
For more insights on the latest trends in stablecoin markets, visit Dey There for updates on how providers like Circle and Tether adapt to market shifts.
Circle, USDC, withdrawal fees, Tether, stablecoin market
