Circle's USD Coin (USDC) has achieved a historic milestone, reaching an all-time high market capitalization of $56 billion. The stablecoin's supply doubled compared to last year, with an impressive $10 billion increase in just the past 30 days alone.
This remarkable recovery follows USDC's challenging period during the 2023 Silicon Valley Bank crisis, when its market cap dropped to $24.5 billion. The recent surge can be attributed to several key factors, including Europe's Market in Crypto Assets (MiCA) regulation and growing crypto interest in the United States.
While USDC experiences unprecedented growth, it remains second to Tether (USDT), which maintains its position as the largest stablecoin with a market cap exceeding $140 billion. However, USDT's market dominance has decreased to 63.65% as USDC gains ground.
The overall stablecoin market has benefited from this growth, reaching a record total supply of $222.84 billion. Other stablecoins have also shown positive momentum, with Ethena USDe, MakerDAO DAI, First Digital FSUSD, and SkyDollar USDS all recording gains.
Coinbase, a founding partner of USDC, celebrated this achievement by highlighting the stablecoin's utility in global transactions. The exchange now offers users the opportunity to earn up to 4.5% APY on USDC holdings and supports over 200 trading pairs featuring the stablecoin.
Looking ahead, USDC's growth trajectory may continue as the Commodity Futures Trading Commission has selected the stablecoin for its pilot program. Circle CEO Jeremy Allaire indicated that USDC will serve as collateral in future markets, potentially opening new avenues for expansion.
This milestone reflects the growing adoption of stablecoins in the digital asset ecosystem and their increasing role in global financial transactions.