USDC Market Cap Up 80% From 2023 Low

USDC Supply Could Double by 2025 If Rival USDT Is Not Regulated in the EU

USDC, Circle’s second-largest stablecoin, is on a tear. As of January 2, USDC’s market cap was nearly $44 billion, up 80% from its 2023 low of $24 billion.

Previously, 85% of USDC supply was concentrated on Ethereum, but that has now dropped to 65%. Additionally, 10% of the supply is now distributed on Solana, with the remaining 15% spread across networks like Base, Arbitrum, and Hyperliquid. Analysts expect that if this trend continues, USDC’s market cap could double this year.

USDC total supply is up 80% off the lows

65% of supply is on Ethereum

10% on Solana

7% on Base

5% on Hyperliquid

3% on Arbitrum https://t.co/iBeS3MPXx2 pic.twitter.com/Qy5CaFeKjy

— Dan Smith (@smyyguy) January 2, 2025

Grayscale notes that this shift is largely due to retail traders increasingly entering the crypto market through Solana. They are attracted to memecoins and AI tokens on this ecosystem. As a result, the total value locked (TVL) on Solana has increased from around $1.5 billion in January 2024 to nearly $8.5 billion a year later, according to data from DefiLlama.

USDC's growth momentum has not stopped at landing on multiple blockchains, but has also boosted the capitalization of the entire stablecoin market. After Donald Trump was elected US president, the market capitalization of the three largest stablecoins (USDT, USDC, DAI) increased by more than $25 billion, Citi said.

Steno Research estimates that the USDC supply could double by 2025 to $100 billion, provided that the USDT competitor is not yet licensed in the European Union under the MiCA law. If this scenario happens, European users could switch to USDC as an alternative, as the stablecoin has received a license to operate in the EU since mid-2024. And that is also the reason why USDT's market capitalization is falling the most since the FTX collapse.