USDC supply reaches all-time high of $56 billion following $10 billion mint in 30 days

USDC’s market cap has reached  $56 billion, marking a new all-time high for the stablecoin. With the milestone, Circle’s USD-pegged stablecoin continues the positive momentum that has seen its supply increase by 100% year over year.

According to data from Defillama, the milestone follows a 23% growth in the past month. Within that period, it added more than $10 billion. Following its recent performance, Circle USDC has now made a full resurgence from its 2023 decline.

The stablecoin’s market cap had fallen as low as $24.5 billion in 2023 during the Silicon Valley Bank crisis. Although it has been slowly recovering since then, it has seen more rapid growth in the past few months.

The recent growth is due to several factors that have boosted USDC adoption. These include Europe’s Market in Crypto Assets (MiCA) regulation, which has regulated stablecoin or electronic money tokens (EMTs) in the EU.

Meanwhile, growing US crypto interest due to Donald Trump’s emergence as president has also helped Circle’s performance. Even before the election, Trump’s pro-crypto stance signaled changes in sentiments about crypto.

With Trump as president, the industry has enjoyed a massive boost, and stablecoins have been identified as one of the sectors that will likely see regulatory clarity first. The House Financial Services Committee recently released a discussion draft for stablecoins.

All these have helped USDC, which many see as a regulatory-compliant alternative to USDT, grow significantly.

However, USDC’s rise in recent months means it is now eating into the dominance of Tether USDT. While USDT remains the biggest stablecoin with over $140 billion in market cap, its market dominance has fallen to 63.65%.

Still, USDT and USDC growth in the past few months have benefited the stablecoin market in general. Stablecoin supply has reached the highest level ever, at $222.84 billion.

Other stablecoins have also seen gains in the past month. Ethena USDe is up 4%, MakerDAO DAI increased 2.66%, while First Digital FSUSD and SkyDollar USDS are up 12% and 132%, respectively.

Coinbase celebrates USDC growth, highlights use cases 

Meanwhile, Coinbase has celebrated the Circle-issued stablecoin hitting the latest milestone, noting that it shows the importance of stablecoin to the on-chain financial ecosystem. In a recent blog post, the exchange said it has been integral to driving USDC utility as a founding partner.

It said:

“USDC supply now exceeds $56 billion, underscoring its role as a fundamental component of the onchain financial ecosystem. Whether for payments, remittances, trading, or decentralized finance (DeFi), USDC continues to be a go-to stablecoin for global transactions.”

The exchange went on to highlight how it has improved USDC’s utility by allowing users to earn up to 4.5% APY on the stablecoin and introducing a product where users can borrow USDC against their Bitcoin on several chains.

Coinbase added that USDC also powers more than 200 trading pairs on the exchange. Last year, it launched payments with the stablecoin in more than 70 countries through various partnerships with Stripe, Yellow Card, and Remote.com.

Circle included in CFTC pilot program 

Meanwhile, USDC could see more growth in the coming months, with the Commodity Futures Trading Commission taping the stablecoin for its pilot program. While the program details are not fully available, Circle CEO Jeremy Allaire said that its stablecoin will be a form of collateral in the future market.

The commission has announced that it will host a CEO Forum for leading crypto firms. Major companies such as Circle, Coinbase, MoonPay, Ripple, and Crypto.com will participate in the program.

CFTC acting chair Caroline Pham described it as a “groundbreaking initiative” enabling the agency to engage US digital assets market participants and achieve Trump’s promise.

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