The USD Coin (USDC) stablecoin by Circle became the leader in market capitalization growth among stablecoins in 2024, though it has yet to reach its peak levels from 2022.
Circle reported a 78% increase in USDC market capitalization in 2024, reaching $44 billion. This annual growth rate outpaced all other global stablecoins. The total transaction volume for the year exceeded $18 trillion.
The report highlights that USDC’s use cases expanded in 2024, ranging from crypto capital markets to dollar store of value and payment apps, the popularity of which is growing globally. The stablecoin is now available in over 180 countries, serving approximately 1.5 billion people with limited or no access to traditional banking services.
At its peak in June 2022, USDC’s market cap reached $55.9 billion. However, it dropped by more than 45% following the collapse of Silicon Valley Bank in 2023, where USDC reserves worth about $40 billion were frozen. This led to a temporary depegging of USDC from the dollar and triggered a sell-off among holders. Currently, its market cap remains 22% below its peak value.
The report notes that USDC’s growth was driven by increasing regulatory clarity for digital assets globally. Notably, in July 2024, Circle became the first stablecoin issuer to receive MiCA licensing in the European Union. Key USDC markets include regions with high remittance activity, such as Latin America, Africa, and Southeast Asia, where stablecoins offer faster and cheaper transactions compared to traditional payment systems.
Current trends are responsible for the largest traditional banks also entering the stablecoin market and planning to expand their presence in this sector in 2025.
