Berachain's USDC supply plummeted by 450 million within a week, with declining stablecoin incentives likely being the main reason.

According to Wu, in the past week, the supply of Berachain $USDC dropped from 1 billion to 550 million, with approximately 450 million flowing out. Meanwhile, the supply of the native stablecoin $Honey (minted 1:1 through $USDC) decreased from 740 million to 510 million, with around 230 million redeemed. Wu had previously reported that under the Berachain PoL context, the BGT allocations available for the five trading pairs on the initially launched official BeraSwap experienced a sharp decline due to a lack of bribery incentives, causing the BGT yield of the two stablecoin pools to drop from a peak of about 15% to around 3%. This may be one of the reasons for the significant outflow of USDC.