The circulating supply of Circle’s USDC stablecoin has increased by 80% from its 2023 low of under $24 billion to nearly $44 billion as of January 2, 2025, driven by rising onchain activity. Users are now diversifying their holdings across various blockchain networks, with approximately 65% of USDC on Ethereum, 10% on Solana, and 15% on layer-2s like Base and Arbitrum. This change marks a significant shift from 2023, when nearly 85% of USDC was concentrated on Ethereum. Increased usage of Solana, along with its total value locked rising from $1.5 billion to nearly $8.5 billion in 2024, highlights this trend. Analysts predict USDC's market capitalization could reach up to $100 billion in 2025, contingent on regulatory developments concerning Tether in the EU, potentially leading to greater adoption of USDC as an alternative. Additionally, the stablecoin’s popularity is seen as a positive sign for decentralized finance projects, with many DeFi applications gaining traction.

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