USD Coin (USDC), one of the most popular stablecoins, has experienced impressive growth in circulation during 2024, with a 78% increase compared
USD Coin (USDC), a leading stablecoin, has seen impressive growth in 2024. According to a recent report by Circle, the company behind USDC, the stablecoin now has over 500 million end-users around the world. In November 2024, the monthly transaction volume also crossed $1 trillion, showcasing the exponential growth in adoption and use.
Highlighting its role in integrating traditional and digital finance, USDC, which is supported on 16 blockchains, has facilitated the transfer of over $850 billion between fiat currencies and digital assets. Furthermore, through the Cross-Chain Transfer protocol, it has processed over $20 billion in USDC transactions. This capability makes USDC an essential component of decentralized finance (DeFi) applications and cross-border payments, offering greater liquidity and accessibility to users globally.
Despite this growth, USDC still trails behind Tether (USDT) in terms of market capitalization. However, Circle has emphasized its compliance with crucial regulations, such as the Markets in Crypto Assets (MiCA) legislation in the European Union and Canada's rules, which has helped it gain an edge over its competitor.
While Tether has not been as actively engaged in adhering to these regulations, USDC has maintained a strong focus on compliance, which has been well-received in international markets. This commitment to regulation has made USDC a preferred choice for many institutional investors and governments as they explore the potential of stablecoins.
In 2024, Circle also saw significant growth with EURC, the euro version of USDC, which now surpasses $1 billion in weekly transfer volume, highlighting the growth in the European market.
Moreover, Circle has continued its efforts to improve global financial inclusion by partnering with platforms like MoneyGram and Chipper Cash to help unbanked individuals gain access to stablecoins. These partnerships play a crucial role in bringing financial services to underserved populations and promoting economic inclusion on a global scale.
As the stablecoin landscape continues to evolve, Circle anticipates significant growth in areas such as global payroll, tokenized trade, supplier payments, and point-of-sale adoption. The integration of USDC into traditional payment networks, like Mastercard and Worldpay, will further expand access to digital payments for both businesses and consumers, positioning the stablecoin as a key player in the global digital economy.
