Circle's #USDC stablecoin has seen a remarkable revival, with its circulating supply growing by 80% since hitting a low of less than $24 billion in 2023. As of January 2, 2025, the supply stands at nearly $44 billion, reflecting its growing adoption across multiple blockchains and use cases.

Blockchain Diversity Fuels Growth

Ethereum: Continues to lead with 65% of USDC’s supply, though its dominance has decreased from 85% in 2023.

Solana & Base: Combined, they account for 17%, with Solana appealing to retail traders for meme coin trading and Base gaining traction through Ethereum Layer 2 solutions.

Other Networks: Hyperliquid and Arbitrum collectively hold 8%, highlighting the trend toward low-latency and scalable trading solutions.

This diversification signals a shift in user preferences toward cost-effective and efficient blockchain environments.

Key Drivers of Growth

1. Ethereum Layer 2 Expansion:

Supply on Layer 2 solutions surged from $1.9 billion to $8.1 billion in 2024, with Base seeing a 26x increase and Arbitrum a 4x rise.

The Ethereum Dencun upgrade in March 2024 improved scalability and reduced transaction fees to below $0.01.

2. Transaction Volume Milestones:

Total USDC transaction volume exceeded $15 trillion in 2024.

Over 100 million unique transactions were recorded, showcasing increasing retail and institutional adoption.

3. Market Confidence Rebound:

Despite setbacks during the Silicon Valley Bank collapse in 2023, USDC restored its dollar peg in just four days, reinforcing its stability.

Competitive Landscape

USDC remains second to Tether (USDT) by market capitalization but continues to close the gap by diversifying its utility and blockchain footprint. Its rebound signals growing confidence in Circle's operational resilience and stablecoin infrastructure.

Takeaway:

The 80% surge in USDC’s supply highlights its adaptability and growing relevance in a competitive market. With expanding adoption across Ethereum Layer 2 solutions, Solana, and emerging networks, USDC is poised for continued growth in 2025.

Disclaimer: This is not financial advice. Always conduct your research.

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