TL;DR
USDC’s circulating supply has nearly doubled from its 2023 lows, reaching approximately $44 billion as of January 2, 2025.
The growth is driven by increased on-chain activity, particularly on alternative layer-1 networks like Solana and Hyperliquid.
Diversification across blockchain networks and the rising adoption of DeFi applications have also contributed to USDC’s significant expansion.
The circulating supply of USDC, a stablecoin backed by the US dollar, has remarkably increased over the past year. As of January 2, USDC’s circulating supply has nearly doubled from its 2023 lows, reaching approximately $44 billion. This significant growth has been driven by various factors, including increased on-chain activity, diversification across blockchain networks, and the rising adoption of DeFi applications.
Increased On-Chain Activity
One of the primary drivers behind USDC’s growth is the surge in on-chain activity. As more users engage with blockchain technology, the demand for stablecoins like USDC has risen.
This trend is particularly evident in adopting alternative layer-1 networks such as Solana and Hyperliquid. These networks offer faster transaction speeds and lower fees, making them attractive options for users seeking efficient and cost-effective solutions.
Diversification Across Blockchain Networks
USDC’s distribution across various blockchain networks has also contributed to its growth. In 2023, USDC was heavily concentrated on the Ethereum network, which held 85% of the stablecoin’s circulating supply.
However, by January 2025, this concentration had decreased to 65%, with the remaining supply spread across networks like Solana, Base, Arbitrum, and Hyperliquid. This diversification has allowed USDC to reach a broader audience and cater to the needs of different blockchain ecosystems.
Adoption of Decentralized Finance (DeFi) Applications
The rise of DeFi applications has played a crucial role in the increasing demand for USDC. Stablecoins are often used as an on-ramp to DeFi platforms, providing users with a stable and secure means of participating in various financial activities.
In December 2024, Grayscale added several DeFi applications, including two on Solana, to its list of top tokens to watch in the first quarter of 2025. This move highlights the growing importance of stablecoins like USDC in the DeFi space.
The doubling of USDC’s circulating supply over the past year can be attributed to a combination of increased on-chain activity, diversification across blockchain networks, and the rising adoption of DeFi applications. As the cryptocurrency ecosystem continues to evolve, USDC is well-positioned to maintain its growth trajectory and play a vital role in the future of digital finance.
