USDC Circulation Grew 78% in 2024: Report

USDC issuer Circle has reported that the stablecoin’s circulation elevated by 78% in 2024.

The uptick made USDC the fastest-growing fiat-pegged crypto asset by market capitalization within the final 12 months.

Regulatory Compliance

Based on the report, the provision of USDC went from a low of $24.4 billion in early 2024 to $43.9 billion by January 1, 2025. This development is in stark distinction to 2023, when the stablecoin shrank by 45% to $33.2 billion following the collapse of Silicon Valley Financial institution (SVB).

The Santa Clara-based monetary establishment had held about $3.3 billion of Circle’s money reserves. Its failure triggered a large sell-off that brought about USDC to briefly depeg from the U.S. greenback.

Quick-forward to the current, the digital asset now operates throughout 16 blockchains and has facilitated fiat forex transfers price greater than $850 billion. Furthermore, in November 2024, its month-to-month transaction quantity broke previous the $1 trillion mark, pushing its historic transaction whole to greater than $18 trillion.

Circle Chief Technique Officer Dante Disparte credited USDC’s current progress to his firm’s proactive engagement with regulators. This was exemplified by its turning into the primary stablecoin issuer to safe a license beneath the European Union’s Markets in Crypto Belongings (MiCA) framework.

Headquartered in Boston, Circle was additionally one of many few crypto corporations that met Canada’s stringent VRCA itemizing requirements. These necessities led a number of corporations, together with Kraken, Bitstamp, and Bybit, to halt operations within the nation.

Tether Nonetheless Dominant

Nonetheless, it has not all been clean crusing for the group. Towards the top of final yr, Circle was reportedly pressured to slash its workforce by greater than 6% following what it referred to as a routine operational evaluation.

Additionally, regardless of the expansion recorded up to now yr, USDC nonetheless trails USDT. The primary stablecoin ended 2024 with its market cap at an eye-watering $137.5 billion. This quantity represents 66% of the complete stablecoin sector, which is price almost $208 billion.

Moreover, since 2021, USDT’s worth has elevated by greater than 74%, whereas USDC’s has improved by a much less exceptional 8.8%. Information from CoinGecko exhibits that Tether was capped at $78.3 billion in 2021, whereas the now-rebranded USD Coin stood at $42 billion.

Tether additionally just lately introduced that it’s moving its operations to El Salvador and constructing its first bodily headquarters after being licensed as a digital service supplier within the nation. The corporate, which expanded its BTC reserves by $700 million on the final day of 2024, reported internet earnings of $7.7 billion within the first three quarters of that yr.