Circle stablecoin USDC has reached $60 billion in market cap, signifying a new all-time high for the stablecoin as it continues its resurgence. According to DefiLlama, the stablecoin now has $60.1 billion in circulating supply. With the milestone, the token has doubled in the last year, as its market cap was $30 billion this time last year. The turnaround shows how fast the token has been able to rebound after a staggering 2022 and 2023.
The stablecoin hit a peak of $55 billion but soon fell due to hard times, especially with the collapse of FTX in 2022 and Silicon Valley Bank in 2023. The collapse of SVB affected the token as the bank was responsible for about 8% of its supply at the time. The issue caused the stablecoin to lose its peg with the dollar for a while before it regained it. All these issues led to its market cap falling to around $23 billion in 2023.
So far, it looks like all these issues are in the past, with USDC witnessing continuous growth over the last 15 months. Most of the current USDC in supply is on Ethereum, with the network seeing $36 billion of the entire supply. Solana ranks second with $10 billion, while chains like Base, Arbitrum, Berachain, and Hyperliquid share a slight amount of supply.
USDC gains momentum as USDT dominance reduces
USDC has been integral to the entire stablecoin ecosystem where its overall market cap has now hit a new all-time high of $234.6 billion. Although still in the second position, USDC has witnessed remarkable growth in the last year. According to Artemis Analytics, USDC has witnessed a massive increase in value out of all the top stablecoins in the market in the last three months.
Over that period, the supply of the stablecoin increased by $16 billion, which puts it far ahead of USDT at $4.7 billion. USDS market cap also saw a slight surge of $3.6 billion, with the newly launched Ethena-issued USDtb supply increased by $1.3 billion. Meanwhile, the growth of USDC is already challenging the dominance of USDT in the sector. While USDT remains in the lead with a $144 billion market cap, its dominance has dropped from around 70% to about 61%.
However, it remains to be seen what will happen in the future as their dominance could yet be challenged by other stablecoins in the market. More stablecoins are already emerging as the sector continues to see interest from regulators. Several countries have started to regulate stablecoins, with the United States House of Representatives and Senate having different bills to that effect.
More players are also entering the space. According to a report by Financial Times, Fidelity Investments, an asset manager with $5.9 trillion under management is currently working on its Stablecoins. If it comes out successful, the firm will join other firms like PayPal, Ripple, World Liberty Financial, and Ethena as the newest entrants into the crowding sector.