Stablecoin Market Cap Surpasses $224B – USDC Gains Momentum!

Since 2023, the stablecoin market has grown significantly, mainly driven by USDT (Tether). However, recently, USDC has been gaining an edge over other stablecoins.

The stablecoin market has seen substantial growth since 2023, largely driven by the success of USDT (Tether). However, recently, USDC has been making significant gains over other stablecoins in the market.

This trend can be attributed to the recent decline in altcoins, which has caused a significant portion of sell-offs to be converted into USDC.

According to Alphractal, this sell-off and sell-to-stablecoin activity have been observed following the recent market drop.

“We can see that a large portion of sell-offs have been converted into USDC, which is gaining an edge over other stablecoins.”

A decline in dominance could open the door for new market highs.

USDC’s market cap is now close to $55 billion

As of January 31, USDC’s market capitalization was $53.33 billion, up 120% from $24.1 billion on November 14, 2023. The token had a market share of 24.6%.

USDC’s trading volume was at $8.855 billion, down from its all-time high of $20 billion on January 18.

The token also showed a 78% year-over-year growth in circulation. As of January 30, stablecoin issuer Circle had released roughly 3.4 billion USDC, redeemed about 2.3 billion USDC, and increased circulation by about 1.2 billion in just seven days. Currently, over 53 billion USDCs are in circulation.

Both USDT and USDC will likely see a change in their European markets, however, as Crypto.com is set to delist them.

The platform has made the move following the European Union’s Markets in Crypto-Assets (MiCA) Regulations.

In addition to USDT and USDC, the platform has also delisted Wrapped Bitcoin (WBTC), Dai (DAI), Pax Dollar (PAX), Pax Gold (PAXG), and PayPal USD (PYUSD).

For now, the platform has disabled purchases of all these tokens; however, users can still make withdrawals until the end of the first quarter of 2025.