Circle's stablecoin USDC is on a tear, with a market cap of nearly $44 billion, up 80% from its 2023 low. The move is driven by the popularity of new blockchains and regulatory advantages in the European Union (EU).
The spectacular recovery
• USDC Market Cap: Increases from a low of $24 billion in 2023 to nearly $44 billion in early 2025.
• Blockchain allocation: The USDC supply ratio on Ethereum is reduced from 85% to 65%, while Solana holds 10%, and other networks such as Base, Arbitrum, Hyperliquid take the remaining 15%.
This growth momentum partly comes from the DeFi boom on Solana, which attracts retail investors thanks to memecoins and AI tokens. The total value locked (TVL) on Solana increased from 1.5 billion USD to 8.5 billion USD in just one year, according to DefiLlama.
Opportunities from MiCA and legal advantages
USDC has been authorized to operate in the EU since mid-2024, creating a significant advantage over USDT — a competitor that has not met MiCA regulations. According to Steno Research, if this situation continues, the market capitalization could reach 100 billion USD by 2025, becoming the main alternative for users in Europe.
Impact on the stablecoin and DeFi market
The growth of USDC contributes to the overall market capitalization. Since Donald Trump was re-elected president, the market capitalization of the three largest stablecoins (USDT, USDC, DAI) has increased by an additional 25 billion USD. Citi notes that USDC is playing a 'bridge' role that connects users to DeFi.
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Grayscale also sees opportunities from this trend, adding DeFi projects such as Ethena, Jupiter, and Jito to the list of prominent tokens in Q1 2025.
Conclusion
With its legal advantages in the EU and expansion across multiple blockchains, USDC is laying a solid foundation for exponential growth in the coming years. In the context of USDT facing difficulties in Europe, could USDC become the new 'king of stablecoins' in the market? The answer will depend on how users and global investors choose.