As a seasoned researcher with a keen eye for blockchain trends, I’ve witnessed the dynamic landscape of stablecoins unfold over the years. The resurgence of Circle’s USDC is indeed noteworthy, particularly given its impressive 80% surge from the 2023 lows.
And remember, in the world of crypto, if you can’t beat ’em, fork ’em!
Circulating supply of USDC on Circle platform has seen a substantial increase, jumping approximately 80% from its lowest point in 2023.
According to Dan Smith, Data Analytics Manager at Blockwork, the supply of the stablecoin now stands close to $44 billion, as observed on January 2, 2025. This recent amount represents a significant jump compared to its lowest point in 2023, which was just below $24 billion.
USDC’s Blockchain Diversity Expands
New information shows that Ethereum currently controls around 65% of the total USDC supply. Meanwhile, other blockchains such as Solana and Base account for approximately 10% and 7% of the supply respectively. Additionally, Hyperliquid and Arbitrum are also gaining traction, holding about 5% and 3% of the growing USDC supply each.
As a crypto investor, I’ve noticed a significant change in my portfolio composition compared to the year 2023. Back then, Ethereum made up an astounding 85% of the total supply. However, things have shifted now, with retail traders moving towards Solana, which seems to offer a more cost-effective option for speculative trading on meme coins and AI agent tokens. It’s fascinating to see this migration taking place!
Furthermore, the emergence of high-speed trading networks such as Hyperliquid and Ethereum Layer 2 platforms like Base and Arbitrum show a shift in the needs and preferences of cryptocurrency users towards faster transactions.
2024 saw an extraordinary surge in the use of USDC on Ethereum Layer 2 platforms as per Peter Schroeder’s data from Circle, with the supply soaring from $1.9 billion to $8.1 billion. Base witnessed the most significant growth, increasing by 26 times, while Arbitrum experienced a 4-fold rise.
1) In March, the Ethereum Dencun update boosted scalability significantly and lowered transaction fees below a penny. During the entire year, the total volume of USDC transactions soared past $15 trillion. However, Solana started 2024 as the top platform for USDC transactions, but its activity dwindled due to fewer MEV bot operations by market makers. Conversely, the usage of Base picked up steadily, resulting in a surge of transaction volumes during the last four months of the year. By the end of 2024, USDC had registered more than 100 million distinct transactions.
USDC Rebounds
At present, US Dollar Coin (USDC) is lagging behind Tether (USDT), which holds the largest market share due to its capitalization. In 2022, USDC and USDT came close in value, but since then, USDC has experienced a dip, which happened around the same time as the failure of Silicon Valley Bank (SVB), where US Dollar Coin’s issuer, Circle, had reserves.
The unpegging of the dollar occurred following the disclosure that $3.3 billion, approximately 8% of the company’s reserves, was potentially in jeopardy. Yet, faith in the market swiftly returned once USDC managed to re-establish its peg within a four-day span.
Read More
- SUI PREDICTION. SUI cryptocurrency
- „People who loved Dishonored and Prey are going to feel very at home.” Arkane veteran sparks appetite for new, untitled RPG
- LDO PREDICTION. LDO cryptocurrency
- Destiny 2: A Closer Look at the Proposed In-Game Mailbox System
- Clash Royale Deck Discussion: Strategies and Sentiments from the Community
- Jennifer Love Hewitt Made a Christmas Movie to Help Process Her Grief
- ICP PREDICTION. ICP cryptocurrency
- Naughty Dog’s Intergalactic Was Inspired By Akira And Cowboy Bebop
- Critics Share Concerns Over Suicide Squad’s DLC Choices: Joker, Lawless, and Mrs. Freeze
- EUR IDR PREDICTION
2025-01-03 22:56