
USD Coin (USDC) has achieved a significant milestone, surpassing $20 trillion in cumulative transaction volume in 2024, as reported by Circle. In November of the same year, USDC hit a record monthly transaction volume of $1 trillion.
The report emphasized USDC’s role as a digital representation of the US dollar that is seamlessly integrated into various blockchains. The circulation of USDC saw a remarkable 78% year-over-year growth.
Advantages of stablecoins over traditional fiat currency were highlighted in the report, including cost efficiency, near-instant transaction speeds, and global accessibility. Jeremy Allaire, the CEO and co-founder of Circle, expressed his optimism for the future of USDC, stating, “Businesses large and small are building innovative products and services with USDC and Circle’s technology, fueling mainstream adoption that will lead to a faster, stronger, and more resilient internet-based financial system.”
The report attributed the growth of USDC to various use cases, such as cross-border payments and the utilization of DeFi protocols. It also noted that over $850 billion had transitioned from traditional finance to the decentralized economy since the launch of USDC.
According to data from Artemis, the USDC market cap saw a 61% increase in 2024, reaching nearly $39 billion by the end of December. Transfer volume also soared from $22.7 billion to $77.5 billion, marking a remarkable 241% growth within the same year.
Main drivers
The report pointed out key drivers behind the increasing adoption of USDC, including regulatory advancements. As stablecoin regulations become more defined, there is a boost in confidence among users, leading to higher transaction volumes.
Advancements in blockchain technology were also recognized as a significant factor in USDC’s growth. The integration of third-generation blockchains has enabled faster and more cost-effective transactions, making stablecoins more accessible to users.
Additionally, the creation of new products in various sectors where stablecoins can be utilized, from remittances to humanitarian aid, has contributed to the expanding use of USDC.
Popular in emerging economies
Circle highlighted the appeal of USDC in emerging economies, particularly in regions like Latin America and Africa. These countries have adopted USDC as a hedge against inflation and a gateway to global financial networks.
Partnerships with fintech companies like Nubank and Chipper Cash have further extended the reach of USDC. Integration into platforms such as the Apple Store has also played a significant role in boosting adoption. These collaborations have made USDC accessible to over 500 million end-user wallets.