Circle’s USD Coin (USDC) experienced a significant resurgence in 2024, with its market capitalization increasing by 78% year-over-year. This growth marked a recovery from a 45% decline in 2023, attributed to the collapse of Silicon Valley Bank, which had held a portion of USDC’s reserves.
Despite this substantial growth, USDC’s market cap remains approximately 22% below its all-time high of $55.9 billion, recorded in June 2022. As of the end of 2024, USDC’s market value stood at $43.9 billion, up from $24.4 billion at the beginning of the year.
In comparison, Tether’s USDT, the largest stablecoin by market cap, saw a 50% increase during the same period, rising from $91.7 billion to $137.5 billion. Unlike USDC, USDT’s growth in 2024 represented a continuation of its upward trajectory, reaching new historic highs.
Circle attributes USDC’s recovery to factors such as maturing regulatory clarity in major markets, scalable blockchain infrastructure, and a focus on trust and transparency. The firm anticipates further regulatory developments in countries like the United Kingdom, Brazil, Singapore, and Japan in 2025, which could influence the stablecoin landscape.
