TL;DR
- USDC saw a 78% increase in circulation, reaching over 500 million users worldwide.
- The coin has been adopted across 16 blockchains and has facilitated transactions worth over $850 billion between fiat currencies.
- Circle has focused on compliance with international regulations, like those of the European Union and Canada, standing out compared to its competitor, Tether.
USD Coin (USDC), one of the most popular stablecoins, has experienced impressive growth in circulation during 2024, with a 78% increase compared to the previous year. This growth has led to over 500 million end-users worldwide using USDC, according to a recent report shared by Circle, the company behind the stablecoin. In November 2024, the monthly transaction volume surpassed $1 trillion, reflecting exponential growth in its adoption and use. This surge highlights the increasing trust and adoption of USDC in both retail and institutional markets, making it one of the fastest-growing stablecoins in the space.
USDC, now supported on 16 blockchains, has facilitated the transfer of over $850 billion between fiat currencies and digital assets, establishing itself as a key tool for integrating traditional and digital finance. Additionally, it stands out for its ability to facilitate cross-chain transactions through the Cross-Chain Transfer protocol, which has processed over $20 billion in USDC transactions. This versatility has made USDC an essential component of decentralized finance (DeFi) applications and cross-border payments, providing greater liquidity and accessibility for users worldwide.
The Competition and Regulatory Compliance
Despite this impressive growth, USDC is still lagging behind Tether (USDT) in market capitalization. However, Circle has highlighted its compliance with key regulations such as the MiCA legislation in the European Union and Canada’s rules, which has allowed it to gain ground over its competitor. While Tether has not been as proactive in adhering to these regulations, USDC has maintained a strong stance on compliance, which has been well received in international markets. This commitment to regulation has made USDC a preferred choice for many institutional investors and governments exploring the potential of stablecoins.
In 2024, Circle also made significant progress with EURC, the euro version of USDC, which surpassed $1 billion in weekly transfer volume, highlighting the growth of the European market. Moreover, Circle has continued its work to improve global financial inclusion by partnering with platforms like MoneyGram and Chipper Cash to help unbanked individuals access stablecoins. These partnerships are essential in helping bring financial services to underserved populations, promoting global economic inclusion.
Looking Ahead
As the stablecoin landscape continues to evolve, Circle anticipates significant growth in areas such as global payroll, tokenized trade, supplier payments, and point-of-sale adoption. The integration of USDC into traditional payment networks, such as Mastercard and Worldpay, will further expand access to digital payments for both businesses and consumers, positioning the stablecoin as a key player in the global digital economy.
