Circle’s USDC experienced a significant revival as its total circulation supply rose by 80% compared to its 2023 lowest levels.
Dan Smith from Blockwork, Blockwork’s manager of data analytics revealed that the supply for stablecoins had reached almost $44 billion by January 2, 2025. It is a dramatic increase from the low figure of 2023, which was less than 24 billion dollars.
USDC Blockchain Diversity Expands
Latest News data Ethereum is still the leader with USDC, accounting for 65%. There are other blockchains that hold 10% of the USDC supply, such as Base or Solana. Hyperliquid, Arbitrum, and others followed, taking 5%, and 3%, of USDC’s increasing share of supply.
The diversification also contrasts with the period of 2023 when Ethereum represented 85%. The shift appears to be fueled by retail traders migrating to a cheaper alternative – Solana – for speculative trading on meme coins and AI agent tokens.
Also, Ethereum Layer 2 solutions like Base and Arbitrum as well as Layer 1 networks such Hyperliquid designed for low-latency trades and Ethereum Layer 3 networks like Hyperliquid are evidence of the growing preferences of crypto users.
The alignment of this with the stats Circle’s Peter Schroeder posted a blog post in which he revealed the rapid adoption of USDC-based Ethereum Layer 2 Solutions by 2024. The supply jumped from $1.9 billion up to $8.1billion. Base led with a growth of 26x, followed by Arbitrum’s 4x.
Ethereum dencun upgrade In March, we increased scalability even more and lowered transaction fees to below $0.01. During the same period, USDC transactions totaled $15 trillion. Solana started 2024 as the leading USDC trader, but has seen activity drop due to a reduced MEV bot use by market makers. Base, on the other hand, saw its momentum grow steadily and led to a significant increase in transaction volume over the final four months of 2018. USDC recorded over 100 million transactions by the end of last year.
Rebounds for USDC
USDC currently trails Tether (USDT), the leader in market capitalization. USDC and USDT almost reached parity by 2022. However, the USDC fell, coincident with the collapse of Silicon Valley Bank, where Circle had reserves.
It was a loss for the Dollar Peg. triggered when the fintech firm revealed that $3.3 billion – roughly 8% of its reserves – were at risk. The market’s confidence returned when USDC restored the peg in just four days.
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Source: cryptopotato.com
