USD Coin (USDC) Transaction Volume Surpasses $20 Trillion
In a recent report published by Circle, it was revealed that USD Coin (USDC) had surpassed $20 trillion in cumulative transaction volume in 2024. The report also highlighted that in November 2024 alone, USDC recorded $1 trillion in monthly transaction volume.
Key Highlights from the Report:
- USDC serves as a digital representation of the US dollar on various blockchains.
- USDC circulation saw a 78% year-over-year growth.
- Stablecoins offer advantages over fiat money, such as cost efficiency, fast transaction speeds, and global reach.
Jeremy Allaire, co-founder and CEO of Circle, stated:
“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 also attributed USDC’s growth to its various use cases, including cross-border payments and DeFi protocol usage. Additionally, it noted that over $850 billion had migrated from traditional finance to the decentralized economy since the launch of USDC.
According to data from Artemis, the USDC market cap increased by 61% in 2024, reaching nearly $39 billion by the end of December. The transfer volume also saw a significant growth from $22.7 billion to $77.5 billion, a 241% increase in the same year.
Main Drivers of USDC Growth
The report identified three main drivers contributing to the growth of USDC:
- Regulatory advancements that boost confidence in stablecoins.
- Advancements in blockchain technology enabling cheap and fast transactions.
- The creation of new products and applications in various sectors utilizing stablecoins.
USDC’s Popularity in Emerging Economies
Circle highlighted the appeal of USDC in emerging economies, particularly in regions like Latin America and Africa. These countries view USDC as a hedge against inflation and a gateway to global financial networks. Partnerships with fintech companies like Nubank and Chipper Cash have further expanded USDC’s reach, along with integration in platforms like the Apple Store, making USDC accessible to over 500 million end-user wallets.
