USDC market cap has grown by 78%, and Circle emphasizes clear regulation as the key to growth

In 2024, Circle, the issuer of Stable Coin, surpassed Tether's USDT with a growth rate of 78% in Market Cap, becoming the fastest rising Stable Coin. Despite the challenges of the Silicon Valley Bank crisis in 2023, USDC seems to have already regained rise momentum under the promotion of regulatory clarity and global demand.

USDC Drives Global Prosperity

According to Circle's annual report, the USDC ecosystem has experienced significant growth and maturity in the past year. Globally, more and more individuals and businesses are starting to utilize digital dollars on the blockchain network. USDC and its technology platform are driving global business and financial systems to become more efficient and inclusive.

USDC Market Cap rise outperforms the global Stable Coin market

Among them, Circle's Stable Coin USDC has achieved outstanding performance in terms of Market Cap rise, with a circulation volume of USDC rising by 78% compared to the same period last year, surpassing all other Stable Coins, symbolizing its steady recovery after the 2023 Silicon Valley Bank (SVB) crisis.

It is reported that the USDC Market Cap increased from $24.4 billion at the beginning of the year to $43.9 billion at the end of the year. However, compared to the peak of $55.9 billion set in June 2022, USDC's Market Cap is still 22% lower.

Previously, the collapse of the Silicon Valley Bank in 2023 led to restrictions on part of the reserve funds of USDC, causing market panic and a temporary unpegging of USDC.

(Circle CEO: Not angry with SVB, the problem is caused by rising interest rates; USDC faces a crisis of trust, with continuous decrease in circulation)

In terms of trading volume, USDC's monthly trading volume in November 2024 reached as high as $1 trillion, and the annual total trading volume exceeded $18 trillion.

The opportunity for recovery: regulation, infrastructure, and market confidence

Circle CEO Jeremy Allaire attributed the significant rise of USDC in 2024 to multiple factors:

Regulation is gradually becoming clearer: the legal framework of the main market is increasingly clear, providing protection for the adoption and expansion of Stable Coins.

Scalability of blockchain infrastructure: faster, more secure network, providing more efficient transaction operations to USDC.

Trust and Transparency: Circle's ongoing commitment to trust and transparent operations has strengthened market confidence.

Through partnerships with top digital asset exchanges, banks, and wallets, USDC has entered the wallets of more than 500 million users, active in cryptocurrency market activities, storing the value of the US dollar, and constantly rising global payment applications.

USDC and USDT's fierce competition

Compared to the recovery rise of USDC, Tether's USDT 2024 market capitalization only rose by 50%, from $91.7 billion to $137.5 billion, but still hit a historical high, capturing 66.6% market share.

Stablecoin Market Share Chart: USDT (dark blue), USDC (light blue)

(How does the stable coin USDT work? Tether CEO Ardoino shares how digital dollars change the global financial game rules)

DeFiLlama data shows that since 2021, the Market Cap of USDT has risen by 74%, while the increase of USDC is only 8.8%, indicating that USDC still has room for improvement.

Regulatory landing and financial demand are key factors for the rise

Among various reasons, in addition to the strong demand for remittances and cross-border payments in emerging markets, which has created more opportunities for USDC; Circle also believes that further improvement of regulatory frameworks will lay the foundation for the long-term development of the Stable Coin market.

(JPMorgan: EU MiCA regulations promote the development of Euro Stable Coin, the United States may follow up on regulation with the inauguration of Trump)

By 2024, Latin America, Africa, and Southeast Asia will become the main markets for USDC, providing cheaper and faster payment solutions for these regions.

Meanwhile, with the regulatory efforts for Stable Coins in countries such as the UK, Brazil, Singapore, and Japan accelerating, Circle states that this will ensure that participants in the industry adhere to unified high standards, laying the foundation for the globalization of the Stable Coin market.

This article USDCMarket Cap year rise rate reached 78%, Circle pointed out that clear regulation is the key to growth first appeared on ChainNews ABMedia.