Circle’s USDC Breaks Record, Outpaces USDT in Recent Growth Rate

• USDC reached a new all-time high market cap of $60 billion.
• The coin added $16.3 billion to its supply in three months.
• USDC’s growth outpaced USDT, which grew by only $4.4 billion.

USD Coin (USDC) has hit an all-time high and surpassed $60 billion in market cap this week. The coin’s value hitting a previous high of $55 billion in June 2022, was surpassed by this milestone. Stablecoin grew for Circle by adding $16.3 billion to its supply in the last three months.

The rapid growth in USDC’s market cap suggests stronger investor interest and increasing adoption globally. In the same period, Tether (USDT), its main competitor, increased its supply by a mere $4.4 billion. As a result, USDC’s growth rate was much higher, but USDT still dominates in the market cap.

Still, USDT holds the most ground in the stablecoin market, with the top market cap at $144 billion. However, USDC seems to be on a surge in the stablecoin landscape. These changes indicate that investors have more faith in regulated stablecoins backed openly by cash reserves.

Solana Boosts USDC Growth With Stablecoin Surge

USDC’s rapid expansion, however, can be blamed on growing stablecoin activity on the Solana blockchain. In recent years, stablecoins on Solana have reached as high as $10 billion in total value. This growth was primally fueled by USDC issuance, which accounts for more than 80% of Solana’s entire stablecoin market cap of over $12 billion.

The utilization of stablecoins on Solana increases, indicating that Solana has become more efficient and cost-effective than Ethereum. Investors prefer Solana’s speed and scalability, so more stablecoin issuers like Circle move towards it. With Solana’s increased popularity, USDC’s reign in this network boosts it even further in the overall market.

In addition, the increase in Solana stablecoin transactions signals a broader growth of crypto adoption in decentralized finance (DeFi). By ensuring stable prices, stablecoins provide the liquidity DeFi platforms require. Dominance over USDC has firmly placed it as the consumer and institutional investor’s token of choice.

Rising Stablecoin Market Sees New Entrants Amid Regulatory Clarity

The growth of global stablecoins has ramped up, driven by increasing levels of regulatory clarity from governments worldwide. In 2024, stablecoin transactions were equivalent to around 8% more than Visa and Mastercard combined payments. Stablecoins is growing into a more and more mainstream financial instrument.

However, financial institutions and crypto firms are positively responding by launching their stablecoin products. Among the prominent examples are PayPal’s PYUSD and Ripple’s RLUSD, which are supported by U.S. dollar reserves and short-term treasury assets. That trend marks the acceptance of stablecoins as a secure, transparent, and regulated monetary instrument that the industry is open to more broadly.

World Liberty Financial Inc. recently introduced USD1, a new stablecoin backed by U.S. Treasuries and cash deposits. Aimed to provide higher stability and transparency, USD1 was launched first on Ethereum and Binance Smart Chain.