USDC Leads Market Capitalization Growth
USDC, the stablecoin issued by Circle, has demonstrated an impressive 79% increase in market capitalization over the past year, outpacing all competitors, according to the company’s latest annual report.
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Despite this significant growth, USDC’s market cap stands at $43.9 billion, still 22% below its all-time high of $55.9 billion. It also remains far behind the market leader, Tether’s USDT, which commands a market cap of $137.5 billion. Over the same period, USDT has grown by 50%.
“The growth of USDC in 2024 can be attributed to a combination of factors: the maturing regulatory clarity across major markets, the scalability of blockchain infrastructure, and our relentless focus on trust, transparency and utility,” a Circle representative stated.
This rebound comes after a difficult period for USDC. In early 2023, its market cap plummeted by 45% following the collapse of Silicon Valley Bank (SVB), where Circle had held a significant portion of its reserves. The crisis caused a temporary depegging from the U.S. dollar and raised questions about Circle’s resilience.
In the long term, USDC’s performance has been remarkable. Over the past four years, its market cap has surged by 1,135%, more than double USDT’s 552% growth. Circle attributes this success to USDC’s transparency, reliability, and growing adoption across various sectors and regions.
USDC is currently used in over 180 countries, with strong demand in Latin America, Africa, and Southeast Asia. Circle’s focus now shifts to regulatory developments in key markets like the U.S., Japan, and the U.K. These jurisdictions are expected to follow the European Union’s lead, where Circle became the first stablecoin issuer to secure a MiCA license.
Related: Binance and Circle Form Alliance to Challenge Tether
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