Circle's USDC Stablecoin Surpasses $50B in Circulating Supply, But Remains Below ATH

Circle's USD Coin (USDC) has achieved a major milestone, with its circulating supply surpassing $50 billion for the first time in three years.

Stablecoin issuer Circle Technologies’ USD Coin (USDC) has reached a new milestone with its circulating supply surpassing $50 billion for the first time in three years.

According to data from DeFiLlama, USDC's supply reached approximately $51 billion on Jan. 22, showing a remarkable recovery from its 2023 low of less than $24 billion.

This marks a significant achievement for the stablecoin, which has seen its supply grow rapidly since its launch in 2018. However, USDC's circulating supply is still about 10% lower than its all-time high of $55.9 billion, which was recorded in mid-2022.

notably, the distribution of USDC across blockchain networks has also undergone significant changes over the past three years.

While Ethereum still plays a major role, its share of USDC's supply has decreased from 85% to 61%. In contrast, Solana's share has increased to 16% from less than 3%.

This shift in distribution can be attributed to traders' preference for Solana's lower transaction costs, especially for speculative trades involving memecoins and AI-related tokens.

Moreover, the launch of new blockchain platforms, such as the Coinbase-backed Base, an Ethereum layer-2 network solution, and Layer 1 networks like Hyperliquid, have also contributed to this trend.

These platforms offer faster and more cost-efficient alternatives, catering to users' demands for efficient trading solutions.