USDC (USD Coin) Has Hit an All-Time High, Surpassing $60 Billion in Market Cap

USDC (USD Coin) has hit an all-time high and surpassed $60 billion in market cap this week. The coin's value hitting a previous high of $55 billion

"A snapshot of the cryptocurrency market this week revealed that USD Coin (USDC) has hit a new all-time high, surpassing the $60 billion mark in market capitalization.

This milestone follows close on the heels of the coin’s value hitting a previous peak of $55 billion in June 2022.

The coin’s market cap surged rapidly in the last three months, fueled by a $16.3 billion addition to its supply. In comparison, Tether (USDT), the main competitor, increased its supply by only $4.4 billion in the same period.

As a result, USDC’s growth rate was much higher, although it started from a smaller base. Despite this, USDT still holds the most ground in the market cap.

“The rapid growth of USDC’s market cap suggests stronger investor interest and increasing adoption globally. In the same period, Tether (USDT), the main competitor, increased its supply by only $4.4 billion.

“As a result, USDC’s growth rate was much higher, although it started from a smaller base. Despite this, USDT still holds the most ground in the market cap. Among the top ten cryptocurrencies, only Bitcoin (BTC) and Ethereum (ETH) have a higher market cap than USDT’s $144 billion.”

These changes also suggest that investors have more faith in regulated stablecoins backed openly by cash reserves.

Solana Boosts USDC Growth With Stablecoin Surge

Moreover, USDC’s rapid expansion can be attributed to the growing stablecoin activity on the Solana blockchain. In recent times, stablecoins on Solana have reached a total value of $10 billion.

This growth was primarily fueled by USDC issuance, which now covers over 80% of Solana’s entire stablecoin market cap, currently at over $12 billion.

The utilization of stablecoins on Solana is evident in the fact that investors prefer Solana’s speed and scalability, leading more stablecoin issuers like Circle to gravitate towards it.

With Solana’s increased popularity, USDC’s reign in this network boosts it even further in the overall market.

In addition, the increase in Solana stablecoin transactions signals a broader growth of crypto adoption in decentralized finance (DeFi). By ensuring stable prices, stablecoins provide the liquidity DeFi platforms require.

Furthermore, the dominance of USDC has firmly placed it as the consumer and institutional investor’s token of choice in this domain.

Rising Stablecoin Market Sees New Entrants Amid Regulatory Clarity

The growth of global stablecoins has ramped up, driven by increasing levels of regulatory clarity from governments worldwide. In 2024, stablecoin transactions were equivalent to around 8% more than Visa and Mastercard combined payments.

Stablecoins are growing into a more and more mainstream financial instrument.

However, financial institutions and crypto firms are positively responding by launching their stablecoin products. Among the prominent examples are PayPal’s PYUSD and Ripple’s RLUSD, both of which are supported by U.S. dollar reserves and short-term treasury assets.

That trend marks the acceptance of stablecoins as a secure, transparent, and regulated monetary instrument that the industry is open to more broadly.

World Liberty Financial Inc. recently introduced USD1, a new stablecoin that is backed by U.S. Treasuries and cash deposits.

Aimed to provide higher stability and transparency, USD1 was launched first on Ethereum and Binance Smart Chain.