EddieJayonCrypto
22 Jan 25
The circulating supply of Circle’s USD Coin (USDC) has exceeded $50 billion for the first time in three years, reaching approximately $51 billion on Jan. 22, as per DeFillama’s data. This marks a substantial increase from its 2023 low of under $24 billion. While Ethereum remains a major player, its ...
Circle’s USD Coin (USDC) has surpassed a circulating supply of $50 billion for the first time in three years, soaring to approximately $51 billion on Jan. 22, as per DeFillama’s data. This significant surge reflects a shift in distribution across blockchain networks, with users increasingly favoring the Solana blockchain due to its lower transaction costs. Consequently, Solana's share of USDC's supply has risen to 16% from less than 3%, while Ethereum's share has dropped from 85% to 61%. This evolving landscape underscores a broader trend in the cryptocurrency market, as traders gravitate toward more efficient trading solutions offered by new platforms like Base and Layer 1 networks. The rise in USDC's supply marks a compelling rebound, almost doubling from its 2023 low of under $24 billion. Despite this growth, the stablecoin still sits 10% below its peak of $55.9 billion recorded in mid-2022. The redistribution of USDC across blockchain networks over the last three years reveals a clear preference for Solana, attributed to its cost-effective nature, especially for speculative trades involving memecoins and AI-related tokens. Moreover, the emergence of alternative blockchain platforms like Base and Layer 1 networks has further bolstered this shift, providing users with faster and more economical trading options. As investors navigate the evolving dynamics of the cryptocurrency market, the surge in USDC's supply and the redistribution across blockchain networks underscore the ever-changing landscape and the growing prominence of alternative platforms like Solana. This shift reflects a broader trend as traders seek more efficient, cost-effective, and responsive trading solutions—a narrative that showcases the dynamic and evolving nature of the cryptocurrency space.