TLDR:
- In 2024, USDC not only surged by 78% in circulation but also expanded its reach to over half a billion users and hit an astonishing $1 trillion in transactions every month.
- Even with its growth, USDC's market cap of $46 billion remains smaller than Tether’s $137 billion, though USDT witnessed a slight dip of 2.15% over the past month.
- Circle has achieved MiCA compliance in the European market, setting itself apart as Tether faced delisting issues on Coinbase Europe, paving the way for a new alliance between Binance and Circle.
- USDC made a strong comeback after suffering a 45% drop in market cap in 2023 due to the collapse of the Silicon Valley Bank.
- Supported across 16 different blockchains, USDC has managed to bridge over $850 billion in fiat currencies effectively.
Circle’s USD Coin (USDC) demonstrated a robust recovery in 2024 Marked by a significant 78% surge in circulation, USDC has captivated over 500 million users around the globe. Its monthly transaction volume hit a staggering $1 trillion in November 2024, adding to an all-time total that surpasses $20 trillion.
The bounce-back came after a tough year in 2023 when USDC’s value plunged by 45% following the collapse of Silicon Valley Bank. Heading into 2024, USDC’s value climbed from $24.4 billion to $43.9 billion by the year’s end, still shy of its all-time high of $55.9 billion in June 2022.
Despite USDC's dynamic growth, Tether (USDT) holds its ground as the top player. Tether’s market cap shot up by about 50% in 2024, going from $91.7 billion to a massive $137.5 billion. This is while USDT saw a small drop of 2.15% over the last 30 days, yet USDC climbed by 9.5%.
Circle’s dedicated push for regulatory compliance has been a cornerstone of its success in 2024. Achieving alignment with the European Union's MiCA regulation, Circle is poised for new ventures within Europe.
As the regulatory climate changed, Coinbase Europe removed USDT and other non-compliant stablecoins, making way for Binance, the largest cryptocurrency exchange globally, to form a strategic partnership with Circle. to boost USDC adoption.
EURC, the European equivalent of USDC, has soared past $1 billion in weekly transactions, illustrating growing traction in Europe. The cross-chain expansions have boosted USDC’s presence, with support on 16 blockchains and the Cross-Chain Transfer Protocol handling over $20 billion in transactional volume.
By teaming up with financial service companies like MoneyGram and Chipper Cash, Circle has enhanced the ease of converting USDC to local currencies for users, fostering seamless transactions.
The infrastructure developments by Circle never halted, as they facilitated over $850 billion in value transfers between traditional and digital currencies. Their collaborations with major payment entities like Mastercard and Worldpay are broadening digital payment possibilities.
USDC's expansion over more than 180 countries is especially notable in regions like Latin America, Africa, and Southeast Asia, where traditional remittance and payment systems face barriers of high cost and sluggish speeds.
Tether’s market cap has experienced an explosive growth of 552% from late 2020, while USDC observing a drastic increase of 1,135%. But shifting the lens to 2021, Tether's expansion outpaces with a 74% increment, juxtaposed against USDC’s modest 8.8% growth.
Looking ahead to 2025, Circle anticipates pivotal regulatory shifts in markets like the UK, Brazil, Singapore, and Japan, as these countries work toward establishing stablecoin frameworks.
Circle focuses on catering to approximately 1.5 billion people without sufficient banking services worldwide. The plan includes broadening payment methods and simplifying access to digital financial systems.
Industry analysts predict that, despite Circle’s positive regulatory perspective, challenges linked to regulatory ambiguity and transparency remain significant into 2025.
Monthly transactional data mirrors ongoing momentum, with consistent adoption rates witnessed both in institutional and retail spheres. The integration of USDC within established payment mechanisms underpins its increasing utility.
