USD Coin exceeded $20 trillion
USD Coin (USDC) exceeded $20 trillion in total transaction volume in 2024, as reported by Circle. In November 2024 alone, USDC documented $1 trillion in monthly transaction volume.
The report emphasized USD Coins function as a digital equivalent of the US dollar integrated into multiple blockchains. Furthermore, USDC circulation expanded by 78% year-on-year.
The publication further endorsed the advantages of stablecoins over fiat currencies, including cost-effectiveness, nearly instantaneous transaction times, and a worldwide reach.
Jeremy Allaire, co-founder and CEO of Circle, remarked:
“Businesses of all sizes are creating innovative products and services utilizing USDC and Circle’s technology, driving mainstream adoption that will result in a quicker, more robust, and more resilient internet-based financial system.”
The report credited USDC’s expansion to various use cases, including cross-border payments and the application of DeFi protocols.
Additionally, it noted that over $850 billion has been transitioned from traditional finance to the decentralized economy since the introduction of USD Coin.
According to data from Artemis, the USDC market capitalization grew by 61% in 2024, reaching nearly $39 billion by the end of December. The transfer volume also surged from $22.7 billion to $77.5 billion in the same year, marking a 241% increase.
Main factors
The report connected the escalating use of various applications to major advancements, the first being regulatory progress. As the regulations surrounding stablecoins evolve, these assets gain from enhanced confidence, increasing transaction volumes.
Improvements in blockchain technology also represent another vital development supporting USD Coin growth. The report mentioned the integration of third-generation blockchains as facilitators of low-cost and rapid transactions, improving access to stablecoins.
The third factor, as indicated in the report, is the development of new offerings in various sectors where stablecoins can be utilized, ranging from remittances and payroll solutions to humanitarian aid and online commerce.
Favored in developing economies
Circle asserted that USDC’s attractiveness spans emerging economies, particularly in Latin America and Africa. Nations in these areas have adopted USDC as a safeguard against inflation and a way to engage with global financial networks.
Collaborations with fintech firms like Nubank and Chipper Cash have further broadened its reach.
Moreover, integration into platforms like the Apple Store greatly enhances USDC adoption. Collectively, these partnerships make USD Coin accessible to over 500 million consumer wallets.
Mentioned in this article
Be the first to comment