Please use cautious before CRCL earning next week

Below are two charts about USDC.

The first chart is the market cap of USDC over last 12 months. Since USDC is 1:1 against dollar, we can view this chart as the total circulation of USDC on the market. You can see that while it is still growing, the curve has flattened a bit after the explosive growth from last year to April of this year

The second chart overlays the Bitcoin price with USDC circulation volume. We can see that when Bitcoin started this historical rally from Oct last year, USDC circultion has also risen accordingly, contributing to it steep rise all the way to April this year. However, for whatever reason, the recent Bitcoin rally from 76K to the current 120K, the USDC circulation only increased moderately.

If you read my blog, you know that for CRCL, 99% of its current revenue comes from collecting T-Bill inteest on USDC. I dont think this is a red "get out and sell all your CRCL" signal, as USDC circulation still grow from 60K to 65K. 

But pay close attention to the conference call where CRCL expects the USDC circulation to be in Q3. If it continues to flat out, it would be a warning signal