Users deposit funds into Circle account and receive USDC or EUROC at a 1:1 rate.

Circle is a financial technology company that is the principal architect of USDC and EUROC - full-reserve fiat stablecoins that bring US dollar and euro liquidity on-chain.

Circle is a private company registered in the US. Circle's investors include Goldman Sachs, Baidu, and IDG Capital etc.

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# Circle Average trading volume (per trade) Methodology

## 1. Overview

Average trading volume (per trade) is calculated as the average USD value of a single foreign-exchange trade settled through Circle's StableFX product. This metric is derived by dividing the total daily trading volume by the daily count of settled trades. It is utilized to analyze user behavior and determine whether the platform is primarily adopted by institutional or retail participants. The underlying transactions are executed via `FxEscrow` contracts, facilitating swaps between fiat-backed stable assets such as USD Coin and Euro Coin.

## 2. Data sources

- **Blockchain events**: `recordTrade` and `authorizeTrade` function calls, and `TradeStatusChanged`, `TakerRefunded`, and `MakerRefunded` events from `FxEscrow` contracts, covering Arc
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Trade settlement tracking

- **Purpose**: Identify successfully settled trades and filter out incomplete or refunded transactions
- **Logic**: Trade data is extracted from `recordTrade` and `authorizeTrade` function calls from `FxEscrow` contracts. Settlement is confirmed by matching these calls with `TradeStatusChanged` events from `FxEscrow` contracts. Transactions associated with `TakerRefunded` or `MakerRefunded` events from `FxEscrow` contracts are excluded, as refunded trades do not transfer value. Additionally, trades involving the system emitter address as either the base or quote asset are filtered out.
- **Key fields**: `trade_id`, `base_token_address`, `quote_token_address`, `base_amount`, `quote_amount`

### Component B: Trading volume calculation

- **Purpose**: Calculate the daily USD value of settled trades
- **Logic**: Base and quote asset amounts are normalized by their respective decimal precisions using asset metadata. These normalized amounts are converted to USD using end-of-day price feeds. To prevent double-counting, a one-sided valuation is applied where each trade is valued at the lesser USD value of its two currency legs. The resulting USD values are aggregated daily.
- **Key fields**: `base_amount`, `quote_amount`, `price_usd`

### Component C: Trade count aggregation

- **Purpose**: Determine the daily number of unique settled trades
- **Logic**: The daily trade count is calculated by aggregating the distinct on-chain trade identifiers from the settled trades dataset. Through this aggregation, a single trade whose legs are settled across separate transactions is counted only once.
- **Key fields**: `trade_id`

### Component D: Average volume calculation

- **Purpose**: Calculate the average trading volume per trade
- **Logic**: The total daily trading volume in USD is divided by the daily count of unique settled trades. A safe division function is applied to handle instances where the trade count is zero, preventing division-by-zero errors. The final metric is generated at a daily granularity.
- **Key fields**: `trading_volume`, `trade_count`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Circle

Average trading volume (per trade)

Average trading volume (per trade)

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