USDC (USDC-USD), Circle’s dollar-backed stablecoin, has seen a major resurgence, with its circulating supply climbing 80% from its 2023 lows. As of January 2, the stablecoin’s market cap sits at nearly $44 billion, up from under $24 billion last year, according to data from Blockworks Research. Analysts, like Dan Smith, point to growing on-chain activity and the rise of alternative blockchain networks as key drivers behind this surge.
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USDC Expands across Multiple Blockchains
USDC is now more widely distributed across networks. While Ethereum (ETH-USD) once dominated with 85% of USDC’s circulating supply, it now holds only 65%. Solana (SOL-USD), once a smaller player, has seen its share grow to 10%, with smaller blockchains like Hyperliquid and Arbitrum (ARB-USD) also gaining ground. This shift reflects retail traders’ growing interest in Solana, fueled by speculation around Solana-based memecoins and AI tokens, Grayscale noted in December.
Forecasts Predict USDC’s Continued Growth
Looking ahead, analysts expect USDC’s market cap to continue climbing, potentially reaching $100 billion by 2025. If Tether remains unregulated in the U.S., many Europeans might shift towards USDC as their stablecoin of choice, according to Steno Research.
