The total supply of the stablecoin USD Coin (USDC) has declined from $55.55 billion to $46.57 billion in the last 90 days.

Circle burns USDC when a user redeems the coin for the underlying fiat currency, usually US dollars, that backs the stablecoin.

Data from LoanScan shows USDC lending rate on Compound and Aave has shrunk more than 70% since the start of the year.

This decline has taken DeFi yields below what is on offer in the traditional finance market.

Tether (USDT) supply has increased within the same period. USDT’s circulating supply is up more than $2 billion since early July. Tether’s dominance of the stablecoin market has also risen to a three-month high of 45.9%.