USDC Stable at $1.0003 as Legal Freeze on Stolen Funds Extends

On OCT 31 2025, USDC rose by 0.02% within 24 hours to reach $1.0003, reflecting steady performance despite ongoing legal and market dynamics. Over the past seven days, the stablecoin gained 0.04%, while monthly gains reached 0.06%. Annually, USDC has declined slightly by 0.17%. These figures highlight the coin’s resilience and its role as a reliable peg in the cryptocurrency ecosystem.

A New York federal judge has extended a freeze on $63 million in stolen USDC linked to the 2023 Multichain exploit, supporting Singapore-based liquidators in their recovery efforts. The ruling requires Circle, the issuer of USDC, to maintain the freeze on three Ethereum wallets containing the stolen funds. This order ensures that the assets remain untouched during cross-border proceedings, facilitating international collaboration between the U.S. and Singapore courts.

The Multichain hack in July 2023 resulted in a $210 million loss, with USDC being among the assets stolen. The legal action marks a significant step in the ongoing effort to recover digital assets and uphold accountability in the crypto space. By extending the freeze, the court aims to prevent potential dissipation or unauthorized movement of funds, aligning with the broader goals of international insolvency cooperation.

USDC continues to gain traction as the preferred stablecoin for on-chain activity, surpassing Tether’s USDT in growth and market capitalization. JPMorgan analysts reported that USDC’s market cap increased by 72% since January 2025, reaching $74 billion, compared to USDT’s 32% growth. The shift in preference is attributed to USDC’s regulatory clarity, transparent reserve management, and compliance with frameworks such as the Markets in Crypto-Assets (MiCA) regulation in Europe.

Circle’s alignment with MiCA and the U.S. Genius Act has further bolstered USDC’s appeal among institutional investors and regulated entities. Integrations with payment networks like Visa, Mastercard, and Stripe have enhanced USDC’s utility in on-chain settlements and merchant payments. Additionally, the Cross-Chain Transfer Protocol (CCTP) enables secure movement of USDC between blockchains without relying on custodial bridges, reinforcing its role in decentralized finance.

The stablecoin’s growth has also been supported by its presence on high-activity blockchains such as Solana and Base. These platforms have seen a resurgence in decentralized finance (DeFi) activity, further expanding USDC’s utility. As USDC continues to outperform USDT in on-chain velocity and transparency, it is positioned as a leading stablecoin in the evolving crypto landscape.

In a separate development, Revolut has introduced a new feature allowing users to convert USD directly into USDT and USDC at a 1:1 rate without fees, up to €500,000 in a 30-day rolling period. The feature is available across six blockchains, including Ethereum, Solana, and Tron, removing friction for on-and-off-chain transactions. This move simplifies crypto management for everyday users and aligns with Revolut’s strategy to offer transparent and cost-efficient financial tools.

Backtest Hypothesis

Given USDC’s extreme stability over the period 2022-01-01 to 2025-10-31, a backtest examining daily movements of ±5% or more would yield no events, as no session showed such a deviation from the peg. This highlights the coin’s consistent performance and its role as a reliable benchmark in volatile crypto markets.

To proceed with a meaningful backtest, one could lower the threshold to examine smaller deviations (e.g., 0.5% or 1%) or analyze alternative metrics, such as absolute moves exceeding $0.01 from the $1.00 peg. These adjustments would generate a more robust dataset, allowing for insights into how even minor fluctuations might impact trading strategies.

Alternatively, the analysis could explore drawdown events or assess liquidity dynamics in markets where USDC is traded across multiple blockchains. Such studies would be particularly relevant for institutional investors and financial institutions relying on USDC for cross-chain settlements and stable value storage.

By refining the backtest parameters, analysts can better understand USDC’s behavior under different market conditions, reinforcing its position as a cornerstone of the stablecoin ecosystem.